Brazil real eases as less swap roller signaled

RIO DE JANEIRO: The Brazilian real weakened slightly on Monday after the central bank signaled it was reducing the rollover pace of currency swaps while other

Latin American currencies were supported by China's decision to cut interest rates over the weekend.

The real lost 0.3 percent after Brazilian policymakers signaled on Friday they would roll over about 80 percent of the currency swaps that expire in April.

Those swaps are derivative contracts that provide investors with protection against currency losses. In the past few months, the central bank had been rolling over nearly 100 percent of maturing swaps.

Other Latin American currencies, including the those of Mexico and Chile, were steady to slightly weaker as investors digested China's decision to accelerate the pace of monetary easing to boost its manufacturing sector.

China is the largest consumer of Latin American commodity

exports and concern about its slowing economy has been weighing on emerging markets in general. China's move initially boosted the price of metals such as copper, but that impact faded later.