While the central bank helped provide a good boost to the Brazilian markets, traders warned that the bounce may be temporary, pointing to ongoing volatility in the political environment, financials and economy.

“In Brazil we see panic selling in markets and especially forced selling among international investors in anticipation of further downgrades,” Bernd Berg, analyst at Société Générale, told the Financial Times.

Investors who remain wary of Brazil’s outlook can also hedge against further weakness through the the ProShares UltraShort MSCI Brazil Capped ETF (NYSEArca: BZQ), the double-leveraged answer to EWZ.

WisdomTree Brazilian Real ETF

For more information on Brazil, visit our Brazil category.

Max Chen contributed to this article.