Brazil Real Outperforms as Central Bank Scales Back Intervention
- Bank reduces amount of reverse currency swaps it offers
- Major currencies decline ahead of Yellen’s speech next week
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Brazil’s real rallied the most in two weeks, defying a slump in emerging markets, as the central bank scaled back efforts to weaken the currency.
The real gained 1 percent to 3.205 per dollar Friday in Sao Paulo, leaving it down 0.4 percent this week. The U.S. dollar index was up 0.4 percent as investors grew cautious before Federal Reserve Chair Janet Yellen’s speech at a meeting next week that may give clues on whether U.S. interest rates will rise this year. An index of 20 emerging-market currencies slid 0.3 percent.