Nov 03, 2008. /Lesprom.com/. The strong value of the US dollar against the Brazilian real continued to impact the Brazilian furniture sector, ITTO reported. According to the Association of Furniture Companies of Rio Grande do Sul (MOVERGS), some furniture manufacturers expected to recover losses due to the rising dollar. However, due to the global economic downturn and waning demand for Brazilian wood products in the US, furniture companies were exercising caution when undertaking business negotiations to avoid future loss. Rising production costs were expected to make it difficult for the sector to recover losses. As production costs rose, suppliers have been demanding higher prices in response to the rising costs of materials, although foreign customers have been asking for discounts on furniture purchases. The market in Rio Grande do Sul was hoping to recover through the engagement of new customers in non-traditional export destinations. Nevertheless, Rio Grande do Sul has had an overall advantage in the current economic crisis, since about 86% of its production has been sold in the domestic market.