February 8, 2013 / 1:50 PM / 4 years ago

Brazil real trims gains as central bank announces intervention

1 Min Read

RIO DE JANEIRO, Feb 8 (Reuters) - The Brazilian real lost steam after the central bank announced it would intervene in the foreign exchange market on Friday, effectively setting a limit on recent currency gains.

The central bank offered to sell as much as 37,000 reverse currency swaps, derivative contracts that mimic the purchase of dollars in the futures market and are used by the monetary authority to weaken the real.

The Brazilian currency last traded at 1.9728 per dollar, 0.1 percent stronger than Thursday's close, after rallying more than 1 percent earlier on the day.

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