Real gains from report stating overseas loan tax might be rescinded

The currency of Latin America's largest economy gained Wednesday for the first time in three trading sessions against the U.S. dollar, according to Bloomberg.

The Brazilian real benefited from a published report indicating the South American nation could withdraw a financial transactions tax applied to overseas loan. As a byproduct, conjecture gained about more inflows to the economy.

"On the margin, this measure could improve inflows a little bit," chief economist Vladimir Caramaschi with Credit Agricole told the news source. "This is one of the measures that forms part of the government’s arsenal."

Trailing only the Chilean peso for top Latin American monetary units performances against the world's reserve currency monitored by Bloomberg, the real has lost 9.3 percent of its value. From late 2008 through last year, the monetary unit had a bullish run of 24 percent gains.

The Wall Street Journal reports the real benefited early in Wednesday's trading session as a result of the European Central Bank indicating it supports the establishment of a European banking union. The value of the real on Wednesday morning against the greenback was higher than its value at Tuesday's market close.