Brazilian central bank denies it is discussing coordinated currency intervention with India

The Brazilian central bank has denied reports it is discussing a coordinated currency intervention with India, following media reports suggesting this was so.

Earlier today, Reuters released a report citing the Indian finance ministry’s principal economic advisor Dipak Dasgupta saying his country is liaising with other emerging economy countries on a plan to co-ordinate intervention in offshore currency markets in an attempt to slow the rapid weakening of their currencies.

He said action would be taken in a “matter of days rather than weeks”, with Brazil and India leading the way.

Last week, Brazil announced it was launching a currency intervention programme worth around $60bn to create liquidity and reduce volatility in its foreign exchange market. The programme will be conducted through currency swap auctions and dollar repurchase agreements.

The Brazilian real has depreciated by more than 15 per cent against the dollar this year, and is at its weakest point in more than four years. The Indian rupee, meanwhile, is down by 18 per cent.

Earlier today, the two countries released their official growth statistics for the April to June 2013 period. In Brazil, gross domestic product (GDP) grew by 1.5 per cent from the quarter before, beating expectations of 0.9 per cent growth.

In India, GDP growth was 4.4 per cent - the lowest in more than four years and falling short of expectations of 4.7 per cent.