Brazil’s Central Bank Intervenes to Weaken Real

The Brazilian real dropped today after the central bank intervened on currency markets to curb the excessive appreciation of the real.
The Brazilian currency has demonstrated the biggest monthly rally in 13 years during June. The Central Bank of Brazil reacted by selling $500 million in reverse swaps. Experts say that it doesn’t look like the bank targets some specific exchange rate but rather tries to reduce exposure to foreign exchange markets and negative impact of volatile currency swings.
USD/BRL rose 0.63% to 3.2332 as of 16:30 GMT today.

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