Brazilian Real Climbs as Central Bank Sells Swaps
The Brazilian real advanced today as the central bank auctioned currency swaps in a attempt to keep the real, which was the worst performer among 16 most-traded currencies, from sliding down and hurting consumers.
The Central Bank of Brazil sold 14,000 out of the 40,000 currency swap contracts on May 25. That was the fourth day of swap auction. Speculations that the central bank will slow the pace of borrowing cost cuts boosted yields on interest-rate futures. Experts say that the bank would sell swaps again if the currency will depreciate further to prevent excessive increase of consumer price inflation.
USD/BRL fell from 1.9878 to 1.9803 as of 16:59 GMT today.
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Earlier News About the Brazilian Real:
- Brazilian Real Rises, Stays Near 2 per Dollar (2012-05-17)
- Brazilian Government Allows Real to Depreciate (2012-05-14)
- Brazil's Real Down as Traders Await End of Greek Troubles (2012-02-06)
- Brazilian Real Goes Higher as GDP in China Slows (2012-01-17)
- Real Dips as Brazil's Economy Slows (2011-12-15)