Brazil’s real dropped a day after the central bank intervened to weaken the best-performing emerging-market currency this year.
The currency depreciated almost 0.1 percent to 1.9577 per U.S. dollar at 9:54 a.m. in Sao Paulo. Swap rates due in January 2014 decreased two basis points, or 0.02 percentage point, to 7.83 percent.
The real fell yesterday from a 10-month high as the central bank sold $1 billion of reverse foreign-exchange swaps. The currency has strengthened 4.8 percent in 2013, the most among 25 emerging-market counterparts tracked by Bloomberg, as inflation accelerated.
“The central bank has found a balance point for the real between 1.95 and 2 per dollar,” Jose Carlos Amado, a currency trader at Renascenca DTVM in Sao Paulo, said in a phone interview. “The government has a clear concern with inflation and depending on the flows it could let the real appreciate more, but in the short term is comfortable with this level.”
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