Brazil's strong currency dampening exports: study

0 Comments | AFP, August, 2008

BRASILIA (AFP) — Brazil's strong money, the real, is weighing heavily on export companies and on firms trying to compete against cheaper imports, according to an industry study published Wednesday.

Two in three companies competing with imported products are losing national market share, and half of those exporting are suffering, the National Confederation for Industry survey found.

Worst-hit among companies selling Brazilian-made goods in Brazil were those in the textile, clothing, shoe and medical equipment sectors.

Since 2003, the real's appreciation against the dollar has been more than double its rise against the euro or any South American currency. In the year to date, the real has gained nine percent against the US unit. Last year, it soared 20...