Central-bank Interventions Fail To Halt Brazilian Real's Decline

The Brazilian real pushed further into record-low territory Thursday despite two interventions by the country's central bank meant to prop up the beleaguered currency. The Central Bank of Brazil auctioned off currency-swap contracts and dollar-repurchase agreements Wednesday afternoon local time. The currency swaps allow local businesses to hedge against the weakening real, while the dollar-repurchase agreements provide a temporary injection of U.S. currency into the country's markets. The central bank has undertaken similar measures in the past. In 2013, it started regular auctions of dollar-swap agreements, but ended that program earlier this year. The real has lost more than a third of its value against the dollar since the beginning of the year, and about half of its value since early 2013. The currency recently fell to 4.23 to the dollar, its lowest level on record, down 0.7% from 4.14 real to the dollar, its value late Wednesday in New York.