Brazil Real Tumbles Most in Four Years as Investors Rush to Sell
- Traders shrug off central bank interventions to stem drop
- Currency touches weakest level since it debuted in 1994
Brazil Real Drops to Record Low
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Brazil’s real fell for a fifth consecutive day and reached a new record low, with the rout in the currency gaining momentum as investors sell amid concern the country’s finances are deteriorating.
Even as the central bank intervened through two different auctions to support the real, the currency tumbled 3.1 percent to 4.1783 per dollar, a level unseen since the creation of the real in 1994 and the worst performance for a day since Sept. 21, 2011. The country’s bond risk rose, yields on local government securities jumped and investors boosted wagers on higher interest rates over the coming years.