Itau Unibanco (ITUB) Stock Down as Brazil’s Real Falls

Itau Unibanco (ITUB) stock is declining along with Brazil's currency today.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of Itau Unibanco (ITUB) - Get Report are slipping by 1.85% to $7.43 in mid-morning trading on Thursday, as some U.S. traded Brazil-based stocks tumble today along with the Brazilian real.

Itau Unibanco is a Sao Paulo-based holding company that provides a range of financial products and services to individual and corporate clients in Brazil.

The real is declining today on expectations that U.S. Federal Reserve officials will give speeches today signaling an increase in interest rates in December, making higher yielding currencies less attractive to investors, Bloomberg reports.

"Today's speeches might increase expectations that interest rates in the U.S. could rise this year," Guilherme Esquelbek, a currency trader at Correparti Corretora de Cambio told Bloomberg.

The real fell by 1.5% to 3.8181 per dollar this morning in Sao Paulo.

A signal of higher interest rates coming to the U.S. next month would counter balance "the victory for the government in approving the repatriation bill, which could give some support for the currency," Esquelbek continued.

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