Brazil's Real Rises as U.S. Stock Gains Boost High-Yield Assets

By Adriana Brasileiro

July 30 (Bloomberg) -- Brazil's real rose to a nine-year high as gains in U.S. stocks lured investors to higher-yielding assets.

The real rose 0.3 percent to 1.564 per dollar at 9:15 a.m. New York time, from 1.5686 yesterday. Brazil's real touched 1.5627 per dollar earlier today, the strongest level since 1999. The currency has gained almost 14 percent this year, the biggest advance against the U.S. dollar among the 16 most-actively traded currencies.

``Good news from U.S. markets make investors more confident and willing to take on more risk,'' said Francisco Carvalho, currency trading manager at Sao Paulo-based brokerage Liquidez Corretora.

The Standard & Poor's 500 Index opened 0.4 percent higher today after gaining 2.3 percent yesterday.

U.S. stock-index futures advanced after employers unexpectedly added jobs in July, according to a private report today. ADP Employer Services said payrolls increased by 9,000 jobs in July. Economists surveyed by Bloomberg forecast the report would show a decrease of 60,000.

The yield on the government's zero-coupon bonds due in January 2010 fell 4 basis points, or 0.04 percentage point, to 14.92 percent, according to Banco Votorantim.

To contact the reporter on this story: Adriana Brasileiro in Rio de Janeiro at abrasileiro@bloomberg.net