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