Brazilian Real Surges Up After Brazil's Jobless, Consumer Price Reports

Thursday morning in New York, Brazil's currency surged higher against the US dollar following the reports showed that the Brazilian consumer prices rose at a softer pace through mid-September and jobless rate barely budged in August. The real thus advanced to its highest level in more than a year.

Brazil's statistical office IBGE announced that the national index of consumer price large, IPCA - 15 rose 0.19% month-on-month in September, slower than the 0.23% increase in the previous month. Economists' were looking for an increase of 0.17%.

Year-on-year, consumer prices increased 4.27% in September, slower than the 4.34% growth in August.

At the same time, Brazil's statistical office IBGE announced that the jobless rate stood at 8.1% in August, up from 8% recorded in the previous month. Economists expected the rate to be 8%. A year ago, the jobless rate was 7.6%.

Extending its 3-day winning streak, the Brazilian real rose to 1.781 against the US dollar around 8:45 am ET. This set the highest level for the domestic currency since September 12, 2008.

If the real rises further, resistance is likely to be seen around the 1.754 level. The dollar-real pair ended Wednesday's trading higher at 1.799.