Brazil real falls to four-month low

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BrazilReal

Reuters.

The new Brazilian 20 and 10 real bills are displayed at Brazil's Central Bank headquarters in Brasilia.

Sao Paulo - Brazil’s real dropped to a level weaker than 2.4 per dollar for the first time in four months as the central bank began scaled-back support for the currency.

The real depreciated 1.9 percent to 2.4074 per US dollar at 10:11 a.m. in Sao Paulo, the biggest decline among 24 emerging-market currencies tracked by Bloomberg.

Swap rates maturing in January 2016 rose nine basis points, or 0.09 percentage point, to 11.71 percent.

Brazil sold $199 million of currency swaps today under a program announced December 18 to auction $200 million each trading day until at least June 30.

The central bank offered $500 million four days a week in 2013.

“The central bank’s intervention is now lighter and should have less of an impact on the market,” Marcelo Schmitt, fixed- income director at Sulamerica Investimentos in Sao Paulo, said in a phone interview. - Bloomberg News


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