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Brazil's real drops 1 pct to near 2.25/dlr at open
June 20, 2013 / 12:27 PM / 4 years ago

Brazil's real drops 1 pct to near 2.25/dlr at open

RIO DE JANEIRO, June 20 (Reuters) - Brazil’s currency, the real, opened sharply lower on Thursday as investors tested the central bank’s tolerance for a weaker currency following the real’s slump on Wednesday after the Federal Reserve signaled the withdrawal of momentary stimulus.

The real fell 1 percent at open to as much as 2.2484 per dollar, its weakest level in over four years. It last traded at 2.229, about 0.4 percent weaker for the day, as investors expected the central bank to intervene at any moment to halt the currency’s slide.

The real slumped nearly 2 percent on Wednesday after Federal Reserve Chairman Ben Bernanke said policymakers are likely to cut on monetary stimulus later this year and end their bond-buying program by mid-2014.

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