Brazil's central bank on Wednesday said the country would buy $3 billion on the currency market to pay off foreign debt, in a move seen by some as an attempt to stem the appreciation of the local currency. The announcement turned around a rally by Brazil's real, which hit its highest level of the year against the dollar shortly before the announcement. After the news, the currency fell 0.4 percent to 2.755 reais per dollar.
The real has been on a general appreciation trend since June, strengthening on the back of strong inflows and the dollar's depreciation, making Brazilian exports more expensive and raising the level of concern among exporters.