Trading in Latin American markets was slow during the U.S. Independence Day holiday and ahead of a key monetary policy decision by the European Central Bank on Thursday.
The real dropped 0.7 percent to 2.0319 per
dollar after trading near the unchanged mark during most of the morning.
It weakened more than 1 percent on Tuesday after Aldo Mendes, the central bank's director of monetary policy, said that disappointing industrial production figures in Brazil make it more likely the government will seek a weaker real to boost exports.
Mendes added that a real stronger than 2 per dollar "may not be good for the industrial sector" and that, if needed, the central bank could resume dollar purchases on the futures market to mop up excess liquidity.