Brazil's government says it will use its sovereign wealth fund to start buying dollars in an effort to halt the appreciation of the nation's own currency.

The Finance Ministry says in a statement there will be no limit to the amount of purchases the fund will make in trying to hold down the value of Brazil's currency, the real.

The sovereign wealth fund is meant to buffer Brazil from financial crises and help Brazilian companies boost trade and expand abroad.

With the appreciation of the real, the goods exported by Brazil are more expensive and less attractive to foreign buyers.

Last week, the real hit 1.71 against the dollar, its strongest level in a year. On Monday, it closed at 1.72 to the dollar.