May 21 (Bloomberg) -- Brazil’s real rallied from a four- month low as a Federal Reserve official supported the continuation of a stimulus program that has buoyed emerging- market assets.
The real rose for the first time in six days, appreciating 0.3 percent to 2.0332 per U.S. dollar at 2:07 p.m. in Sao Paulo. It earlier touched 2.0466, the weakest intraday level since Jan. 22. Swap rates on the contract due in January fell one basis point, or 0.01 percentage point, to 8.12 percent.
St. Louis Fed President James Bullard said in the text of remarks prepared for delivery in Frankfurt that the U.S. central bank should maintain its program of bond buying because it’s the best available option for policy makers to boost lower-than- expected growth. Brazil’s central bank has swung this year between selling currency swaps to prevent the currency from falling too quickly and offering reverse currency swaps to protect exporters by reining in gains.
"Bullard’s support for the Fed’s asset buying helped devalue the dollar abroad and here," Joao Paulo de Gracia Correa, a manager at Correparti Corretora, said by telephone from Curitiba, Brazil.
The currency’s drop toward 2.05 per dollar earlier today attracted exporters, according to Mario Battistel, a foreign- exchange trader at Fair Corretora in Sao Paulo.
"Whoever had big exports took advantage to come in at such a high exchange rate," he said in a phone interview.
--With assistance from Josue Leonel in Sao Paulo. Editors: Dennis Fitzgerald, David Papadopoulos
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