Brazil Real Drops After $5.25 Billion Central Bank Intervention
- Central bank auctions foreign-exchange reverse swaps
- Bank intervenes as Brazil's real best-performing EM currency
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Brazil’s real fell from an almost eight-month high as the central bank stepped up efforts to weaken the currency after Brazilian assets rallied on renewed speculation that impeachment of President Dilma Rousseff is drawing closer.
The central bank announced it would auction 105,000 foreign-exchange reverse swaps Wednesday, a move that’s equivalent to buying $5.25 billion in the futures market, a day after selling a record $8 billion of the contracts. It sold all the contracts offered in five different auctions on Wednesday. Brazil’s currency, the most volatile in emerging markets, fell 0.3 percent to 3.4983 per dollar, after earlier advancing as much as 0.5 percent.