UPDATE 1-Brazil seeks curbs to forex gain on Petrobras

* Large Petrobras offering seen bringing dollar inflows

* Brazil govt seeks to prevent steep forex appreciation

* Real rises to highest since Dec. on inflows expectation

SAO PAULO, Sept 3 (BestGrowthStock) – Brazil’s government will “act
strongly” to prevent the national currency from appreciating
too much because of a flood of U.S. dollars into the country
from the massive offering of state-run Petrobras, Finance
Minister Guido Mantega said on Friday.

Brazil’s real (BRBY: ) has gained for a fourth session and
traded at its strongest level since December on Friday as
investors positioned their bets for a rally for the currency
because of dollar inflows.

Petrobras (PETR4.SA: )(PBR.N: ) filed to sell up to $64.5
billion of new stock in the world’s largest offering in a bid
to fund an aggressive investment program. Overseas investors
normally buy two-thirds of share sales in Brazil, raising
concerns of large capital inflows as fund managers exchange
dollars for reais to buy the stock. [ID:nN03214360]

“Since we are getting closer to the offering, I believe
it’s interfering with the exchange rate the past days or past
weeks,” Mantega said in a conference call with reporters. “This
is temporary and the government intends to act strongly” to
prevent an appreciation.

A surge in Brazil’s economy in the first half of the year
means the country has already secured gross domestic product
growth of at least 7 percent in 2010, Mantega added.

(Reporting by Luciana Lopez, Writing by Elzio Barreto,
Editing by Chizu Nomiyama)

UPDATE 1-Brazil seeks curbs to forex gain on Petrobras