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SAO PAULO, Nov 11 (Reuters) - For a second straight session Brazilian stocks just barely squeaked out gains at the close of day, as investors on Wednesday balanced long-term growth expectations in Brazil with short-term profit-taking.

The benchmark Bovespa index .BVSP inched up 0.19 percent to 66,431.23, well off the day's highs after choppy trading dominated much of the session. The index posted a 2.71 percent gain on Monday, but spent much of Tuesday in negative territory before eking out a 0.13 percent gain.

"It's a trade-off of forces," said Ricardo Retz de Carvalho of Guepardo Investimentos. While some assets have reached or are reaching fair prices, he said, investors still see good long-term prospects in Brazil.

Brazil's currency, the real (BRBY: Quote, Profile, Research), reversed course from earlier in the day and weakened 0.29 percent to 1.722 per dollar. The greenback firmed against a basket of major currencies .DXY on Wednesday.

The real has strengthened about 35 percent so far this year as investors have poured dollars into the country. Those gains prompted the government last month to institute a 2 percent tax on capital inflows on equities and fixed-income investments, and talk has abounded about potential further measures.

"I think there's going to be further capital controls," said Kathryn Rooney, a senior emerging markets strategist with Bulltick Capital Markets.

Rooney added that she sees the real trading around 1.70 in 2010.

"There's this euphoria surrounding all things Brazilian," she said. "Brazil is overbought."