Brazil markets on forex intervention alert as real slide accelerates

The rapid acceleration of the Brazilian real’s slide against the dollar this week has put traders on high alert for intervention from the central bank to stop the rot, although so far there is no sign the central bank has shown its hand.

With messy politics slowing the government’s fiscal reform agenda in Congress, the domestic economy deteriorating and global trade war tensions rising, the real has plunged through 4.00 per dollar to its lowest level since September.

It has depreciated 3.5% this week, one of its biggest weekly declines since Brazil emerged from a brutal recession in late 2016.

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