Brazilian Real Suffers from Fed Tapering Speculations

The Brazilian real was fluctuating between gains and losses today as traders were weighing chances of US Federal Reserve stimulus tapering against prospects for an intervention from the Brazilian central bank. The currency trades below the opening level as of now.

The real has lost 5 percent of its value this quarter. Alexandre Tombini, Governor of the Central Bank of Brazil, reiterated this week his pledge to intervene supporting the currency. Meanwhile, investors were speculating that the Fed may reduce its $85 billion program of monthly bond purchases and such speculations were creating risk aversion on the Forex market, hurting currencies of emerging economies.

USD/BRL rose from 2.3330 to 2.3382 as of 16:56 GMT today, while intraday it climbed as high as 2.3412 and fell as low as 2.3277.

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