But some big companies expressed concern on Thursday that the devaluation could slow consumption in Brazil and hurt their operations there.

Matsushita Electric Industrial and Honda Motor Co Ltd said they expected little impact from the devaluation on their business in Brazil, but said it may have an indirect effect by causing a slowdown in the Brazilian economy.

Matsushita has two plants in Brazil for making audio and video equipment for the local market.

Honda has two plants for making cars and motorcycles which rely mostly on local components and are marketed mainly in Brazil.

``We don't expect a big impact but we have to watch the exchange rate cautiously,'' a Honda spokesman said.

But both Matsushita and Honda were wary of a possible increase in the price of components for use at their Brazilian units.

Brazil's central bank devalued the real currency on Wednesday, prompting an immediate fall of more than eight per cent against the US dollar and sparking fears that the move may tip Latin America into economic crisis.

Sony Corp, which has several plants in Brazil for producing television and audio equipment for local consumption, said it had not yet determined the likely impact of the real's fall.

``But it is unlikely to have a big effect on our business,'' a Sony spokesman said.

Denso, a major car component maker, sang a similar tune.

``We don't expect any big impact from the devaluation in the short- term,'' a Denso Corporation spokesman said.

Denso has a production unit in Brazil for supplying car air-conditioners to European and American carmakers in the country.