The Brazilian real extended gains during trading yesterday (November 16th), rising for the second consecutive day and strengthening its position as the top-performing currency in the world so far this year.After rising a further 0.7 per cent yesterday gains for 2009 exceeded 35 per cent, but a report from the Bank of America insisted that further appreciation is still likely as the real and other emerging market currencies remain broadly undervalued against the US dollar.Speaking to Bloomberg, Benoit Anne, the London-based head of emerging market foreign-currency and debt strategy at Bank of America, explained: "In nominal terms, the real is still undervalued. We think the real should strengthen over the long term based on our model."The Bank of America issued similar buy-positions on other Latin American currencies such as the Peruvian sol, which according to the group is undervalued by around 22 per cent against the dollar.