Brazil’s central bank will increase its intervention in the currency market with foreign exchange swaps to slow the weakening of the real, the bank said. The institution said it would more than double its daily offering of swap contracts to 15,000 from 6,000. The bank made the move after the real this week weakened to beyond R$2.40 to the dollar, an important psychological level for some investors. The level is seen as significant because it has marked previous increases in intervention for the central bank. With the increased intervention, the central bank will roll over a full 100% of swap contracts coming due in October.  The sale of dollar-linked swaps allows investors to exchange bonds linked to local interest rates for paper linked to the dollar, allowing them to hedge against fluctuations in the currency rate.  The increase in intervention is the first for the central bank since February, and comes as the government shows increased concern over exchange-rate fueled inflation ahead of the country’s October presidential elections. Brazil’s 12-month inflation has recently run at near the 6.5% upper limit of the country’s official-inflation targeting band. The real reached R$2.41 per dollar early Wednesday and has weakened more than 8% against the dollar in the past two months. Following the bank’s move to increase intervention, however, the real strengthened 1% to end the session at R$2.38 to the dollar.