Brazil's currency and stocks opened weaker on Monday as global oil prices soared.The local currency, the real, opened 0.28 percent weaker at 2.879 per U.S. dollar before settling around 2.872 reais, 0.03 percent weaker. Meanwhile, the Bovespa index of the Sao Paulo fell 0.97 percent at the open to 22,515 points.

Higher global oil prices are expected to lead to inflationary pressures and possibly higher interest rates in Brazil, where state-run oil giant Petrobras earlier this month started modestly hiking gas prices.

(From Reuters, October 25, 2004)

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