Brazil's real sinks 1.3 pct as cenbank reduces FX support
SAO PAULO, June 11 (Reuters) - The Brazilian real weakened 1.3 percent in the first minutes of trading on Thursday after the central bank slowed the rollover pace of currency swaps that expire early next month, signaling less support for the currency.
The central bank announced late on Wednesday that it will auction this morning as many as 6,300 currency swaps to roll over similar contracts that mature on July 1. Since the beginning of the month, the central bank had been offering as many as 7,000 contracts per day.
Currency swaps are derivatives that support the real by providing investors with protection against currency losses. (Reporting by Walter Brandimarte)
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