SAO PAULO, Dec 5 (Reuters) - Brazil's central bank will extend its daily forex intervention program into 2014, with some adjustments, to curb market volatility that could limit the impact of monetary policy over inflation, bank chief Alexandre Tombini said on Thursday.
'I announce that, with some adjustments, the central bank will extend its currency swap program,' Tombini told a crowd of banking executives in Sao Paulo.
Tombini said the recent volatility seen in foreign exchange markets could make the impact of monetary policy over inflation more uncertain.
The Brazilian real added to early gains and rallied 1.3 percent after Tombini's comments.
Launched on Aug. 22, the central bank's daily intervention program has helped curb volatility in the Brazilian foreign exchange market, which has become more volatile due to concern over the timing of withdrawal of U.S. stimulus measures.
(Reporting by Eric Sukys; Writing by Alonso Soto; Editing by James Dalgleish, Walter Brandimarte and Chizu Nomiyama) Keywords: BRAZIL ECONOMY/INTERVENTION
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