Brazil Real Declines as Bank to Auction Reverse Currency Swaps

Brazil’s real erased its gain and declined after the central bank said it would auction 37,000 reverse currency swaps.

The real earlier rallied as much as 0.8 percent after Finance Minister Guido Mantega said in an interview with Reuters that the government will intervene to stop gains if the currency reaches 1.85 per dollar, a level last seen in April.

The real fell 0.2 percent to 1.9704 per dollar at 11:45 a.m. in Sao Paulo. Swap rates due in January 2015 rose two basis points, or 0.02 percentage point, to 8.21 percent.

The central bank said in a statement that it will release results of its auction after 11:55 a.m. in Sao Paulo.

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