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Brazil Real Slump Deepens as Central Bank Steps Up Intervention

  • Central bank announced another sale of reverse swap contracts
  • Emerging-market currencies declined amid risk aversion
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Brazil’s real dropped for a fourth straight session, its longest losing streak since February, as the central bank once again intervened to weaken the currency.

The real fell 0.8 percent to 3.33 per dollar on Wednesday after the monetary authority placed all 10,000 reverse swaps it offered, a move equivalent to buying $500 million in the futures market. The central bank has acted to weaken the real every day this week.