* Brazil real firms 0.1 pct despite cenbank action
* Optimism over Petrobras inflows props up real
* Region's currencies firm as Europe concerns ease (Recasts; adds comments, updates prices)
By Samantha Pearson and Silvio Cascione
SAO PAULO, Sept 8 (Reuters) - Brazil's central bank stepped up its efforts on Wednesday to contain a recent rally in the country's currency, fighting to protect local exporters as foreign investors pour money into the economy.
The central bank took the unusual step of calling two auctions to buy U.S. dollars on the same day -- the first time it has resorted to this measure since May 3. For details, see [ID:nN08124027]
While the real pared gains after the announcement, it still closed 0.12 percent stronger on the day at 1.723.
"It was a warning saying: 'Look, be careful about buying at these levels, because I can act and put the (real) on another level" said one trader at a brokerage in Sao Paulo.
"It was a surprise but it seemed that the cut-off level was low (the maximum the bank agrees to pay dealers for the dollars) so it only bought a little that was on offer," he said. "It was a case of smoke without fire."
Brazil's currency has been boosted by plans for a massive share-offering by state-owned oil company Petrobras. The offering is expected to lure $15 billion to $25 billion of foreign investment over the coming weeks.
Euphoria over the prospect of foreign money flowing into the country took the real last week to its strongest level against the dollar this year.
Other Latin American currencies firmed as concerns eased over European banks, prompting investors to buy the region's higher-risk assets.
Latin American currencies pared gains slightly after the Federal Reserve released a report saying that the U.S. economy has shown "widespread signs" of slowing over recent weeks. [ID:nN08122132]
But the Mexican and Chilean currencies remained in positive territory.
The Mexican peso
CHILEAN PESO PARKED IN NEUTRAL
The Chilean peso
"The exchange rate is parked on neutral terrain, waiting for a break that could go up or down. If it's up, it should situate itself around 500 to 510 pesos; if it's down, there's very little room to move," said a trader in Santiago.
Strong domestic growth and interest rate increases should continue to boost the peso, said Jimena Zuniga, an analyst at Barclays Capital, in a note to clients.
Meanwhile, "the central bank is likely to hold on to a non-interventionist stance for as long as possible," focusing on other ways to support exporters, Zuniga said. (Additional reporting by Jean Luis Arce in Mexico City and Molly Rosbach and Froilan Romero in Santiago; Editing by Dan Grebler)