Brazil intervened in the foreign exchange markets on Thursday for the first time this year, as its currency real (BRL) fell to four-month lows against the US dollar, according to Reuters.
The central bank sold $1.5 billion in two auctions. USD/BRL rose to 5.5387 on Thursday – the highest level since Nov. 6 – and was last seen at 5.5313.
With the 10-year US Treasury yield rising almost 100 basis points over its Brazilian counterpart, the cost of opportunity of investing in Brazil has changed dramatically, the head of trading at a bank in Sao Paulo told Reuters.
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