Brazil's central bank has moved to halt the decline in its currency and will today begin rolling out a $60 billion intervention programme.
In a statement issued last night, Brazil's central bank said it had decided to use currency swaps and loans to help curb the real's slide, and from today it will begin weekly auctions of $1 billion of dollar loans.
It will also offer the equivalent of $500 million of foreign exchange swaps each day on Mondays, Tuesdays, Wednesdays and Thursdays. The programme will finish at the end of December and sees Brazil broaden its $45 billion strategy announced earlier this year.
Investors have been exiting emerging markets over fears about the Federal Reserve's tapering plan, though Brazil's real has fared particularly badly.
A number of emerging market currencies also succumbed to the rout in May, and although governments are making moves in the right direction, analysts have hesitated to call a near-term end to the slide.