Brazil Real Drops From 10-Month High as Central Bank Intervenes
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Brazil’s real fell from a 10-month high after the central bank sold $1 billion of reverse foreign-exchange swaps to weaken the currency.
The real depreciated 0.7 percent to 1.9569 per U.S. dollar at the close of trading in Sao Paulo after rallying on March 8 to 1.9442 per dollar, the strongest level on a closing basis since May 8. The currency has strengthened 4.8 percent this year, the biggest gain among 25 emerging-market counterparts tracked by Bloomberg. Swap rates due in January 2014 fell 11 basis points, or 0.11 percentage point, to 7.85 percent today.