The Brazilian real on Tuesday dove to its four-plus-year lows against the world's reserve currency on Tuesday amid worries about surging inflation caused by losses to the currency, Bloomberg reports.
The real dropped 0.8 percent against the dollar, plunging to levels not seen since March 2009. Losses for the real are approximately 13 percent during the past three months. The real has distinguished itself as the worst-performing of counterparts to the dollar of emerging market currencies.
"The market is taking advantage of the recent increases in swap rates to make profits in a technical adjustment," chief economist Luciano Rostagno with Banco Mizuho do Brasil in Sao Paulo told the news source on Tuesday.
The IPCA index is set to indicate consumer prices last month rose 6.24 percent as compared to the same period in 2012 after June gains of 6.7 percent, according to median projections of economists surveyed by the news service. Brazil's statistics service is slated to release official data on Wednesday.
The real's losses on Monday prompted investors to await intervention by officials with the Banco Central do Brasil, according to Reuters.
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