NEW YORK (TheStreet) -- Shares of Itau Unibanco (ITUB) - Get Report are falling by 1.96% to $8.51 on Tuesday morning, as some U.S. traded Brazil-based stocks tumble due to the decline in the Brazilian real.
The South American country's currency is declining as the government stepped in to weaken the real, extending a program it announced earlier this month following three years of attempts to support the real, Bloomberg reports.
The real declined by 1.2% to 3.6698 per dollar in Sao Paulo earlier this morning.
Brazil's central bank announced that it will auction 20,000 foreign exchange reverse-swap contracts and hold off from calling a swap rollover auction for the second consecutive session.
"The new auction announced by the central bank last night is intended to contain the appreciation of the real trend, which was boosted in recent days," Italo Abucater, the head of currency trading at ICAP Brasil Ctvm told Bloomberg.
The real rose recently on speculation that a change in Brazil's government is coming, which could end the country's current political and economic crisis.
"Political developments in Brazil should keep the currency volatile," Abucater added.
Itau Unibanco is a Sao Paulo-based financial company offering clients a variety of products and services.