By Tatiana Bautzer and Ben Bain
Oct. 28 (Bloomberg) -- Brazil?s real gained for the first time in three days on speculation that the Federal Reserve will weaken the dollar by buying more government debt.
The real rose 1 percent to 1.7042 per dollar at 4 p.m. New York time, from 1.7214 yesterday.
?The dollar is just generally weak across the board,? Nick Chamie, global head of emerging markets at RBC Capital Markets in Toronto, said in a phone interview. ?The news that the Fed is surveying primary dealers on how much quantitative easing they?re expecting has again increased the market?s perception around the possibility of quantitative easing coming into effect on Nov. 3.?
The greenback fell against the real and 15 other major currencies tracked by Bloomberg.
The Fed asked investors and bond dealers for projections of the central bank?s asset purchases over the next six months to gauge the potential impact of efforts to spur growth through quantitative easing. Fed policy makers are scheduled to meet Nov. 2-3 to consider ways to boost the economy.
Yields fell for Brazil?s longer-term interest-rate futures contracts. The January 2017 yield fell five basis points, or 0.05 percentage point, to 11.79 percent.
The contract due in January 2012, the most traded on the Sao Paulo futures exchange, was unchanged at 11.36 percent.
--With assistance from Catarina Saraiva and Rita Nazareth in New York. Editor: Adriana Arai, Eric Martin
To contact the reporter on this story: Tatiana Bautzer in Sao Paulo at tbautzer@bloomberg.net; Ben Bain in New York at bbain2@bloomberg.net;
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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