The central bank has been selling swap contracts since August to provide currency hedge to investors in an effort that has helped the real gain more than any other major currency in the past six months. The programme was scheduled to end on
A weaker real could further stoke inflation that the central bank says has a 40 per cent chance of accelerating beyond the 6.5 per cent upper limit of the target range this year.
Growth and inflation
The central bank last week halted the world's longest tightening cycle as President
"In the short term, the overriding concern is inflation, which is already a major economic problem and an increasing political liability,"
The real weakened more than any of its emerging-market peers after central bank President
The comment was interpreted as a sign policy makers were considering scaling down or ending the programme.
The currency fell on
Central bankers on
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