iShares Brazil ETF trading lower by 2.7% -- may be attributed to weaker real as central bank pulls back on stimulus
Original Message From: LAURENT CHEKROUN () At: 1/02 13:56:44
Brazil Real Falls to Four-Month Low as Intervention Scaled BackBrazil’s real dropped to a level weaker than 2.4 per dollar for the first time in four months as the central bank began scaled-back support for the currency.The real depreciated 1.9 percent to 2.4074 per U.S. dollar at 10:11 a.m. in Sao Paulo, the biggest decline among 24 emerging-market currencies tracked by Bloomberg. Swap rates maturing in January 2016 rose nine basis points, or 0.09 percentage point, to 11.71 percent.Brazil sold $199 million of currency swaps today under a program announced Dec. 18 to auction $200 million each trading day until at least June 30. The central bank offered $500 million four days a week in 2013.“The central bank’s intervention is now lighter and should have less of an impact on the market,” Marcelo Schmitt, fixed-income director at Sulamerica Investimentos in Sao Paulo, said in a phone interview.