Brazilian Real Advances as Central Bank Supports Currency

The Brazilian real advanced today as the nation’s central bank signaled about an intervention to help the weakening currency. The announcement managed to outweigh the negative market sentiment that was hurting currencies of emerging economies.
The Banco Central do Brasil announced a $60 billion intervention program last week. The currency did not react immediately, but has rallied 3.8 percent since the announcement. Perhaps, traders just needed some time to digest the news.
The threat of a war in Syria continues to be a negative factor for currencies associated with risk. For now, the real managed to shrug off its effect, but downside pressure remains in place.
USD/BRL fell from 2.3468 to 2.3402 as of 4:41 GMT today, while its daily low was at 2.3303. EUR/BRL declined from 3.1305 to 3.1215, reaching the low of 3.1086 intraday.

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