Brazil Real Declines Amid Intervention as Emerging Markets Slump

Brazil’s real declined a second day as the central bank intervened to weaken it, joining a selloff in emerging-market currencies as renewed concern that China’s economy is faltering dimmed demand for riskier assets.

The real slumped 2.1 percent to 3.5656 per dollar at 11:53 a.m. in Sao Paulo after the monetary authority sold 9,800 reverse swaps, a move that’s equivalent to buying $490 million in the futures market. The central bank had offered to roll 20,000 reverse swap contracts in the auction. The S&P GSCI Commodity index dropped 2.1 percent after losing 1.5 percent on Monday, dimming the outlook for inflows into Brazil from exports soy, iron-ore and oil.

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