Reuters: US Dollar Report: UPDATE 1-Brazil cenbank intervenes 3 times as real hits 4-yr low

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Brazil cenbank intervenes 3 times as real hits 4-yr low Jul 31st 2013, 16:48 Wed Jul 31, 2013 12:48pm EDT By Walter Brandimarte RIO DE JANEIRO, July 31 (Reuters) - Brazil's central bank intervened three times in the foreign exchange market on Wednesday as it tried to halt a currency slide that took the real to its weakest level in over four years, potentially adding to inflation pressures. The interventions came right after the real slid to as much as 2.3022 per dollar, its weakest since April 1, 2009, suggesting that policymakers are ready to put up a fight to stop the currency from weakening past the psychologically-relevant mark of 2.3 per dollar. In two separate auctions, the central bank sold a total of 45,300 traditional currency swaps, derivative contracts that emulate an injection of dollars in the futures market. However, it found no demand for the swaps offered at a third auction. The real briefly erased its losses following the interventions but resumed its slide later. It last traded at 2.294 per dollar, 0.7 percent weaker for the day. The central bank has been auctioning currency swaps to provide liquidity to the foreign exchange market as investors increasingly buy dollars, anticipating a tapering of the U.S. Federal Reserve's stimulus measures. Expectations that the Fed will signal it is about to cut back on its bond-buying program increased after data showed the U.S. economy unexpectedly accelerated in the second quarter. For the past two years, the Fed's program has provided a steady source of dollars seeking higher returns in emerging markets. The Fed's much-awaited policy statement will be released at 1800 GMT. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions