Brazil's real weakens past 2.32/dlr for first time in over 4 years
RIO DE JANEIRO
RIO DE JANEIRO Aug 2 (Reuters) - The Brazilian real on Wednesday slid past the mark of 2.32 per dollar for the first time in more than four years as investors tested the central bank's tolerance of a weaker currency.
The real dropped to as low as 2.3202 per greenback, a level not reached since the end of March, 2009, leaving investors on watch for a possible central bank intervention.
It last traded at 2.3175 per dollar, 0.35 percent weaker for the day.
"The market is testing the central bank to see if it has abandoned the ship and will allow the real to weaken further. We passed the mark of 2.31 (per dollar), now we're near 2.32 and so far the central bank has done nothing," said a trader with a foreign bank in Brazil.
The central bank has routinely intervened in the market with the sale of traditional currency swaps, derivative contracts designed to support the real. It refrained from intervening on Tuesday, however, even as the real weakened about 1 percent.
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