The US currency spot price is on track to end trading on a high. After reaching 5.02 reais at the day’s low, the dollar began to rise despite the Central Bank’s intervention to try to slow the rise of the American currency.
The monetary authority held this Tuesday, 2nd, an extraordinary auction of currency swap in which it sold 4,000 contracts for January 2025 (equivalent to 200 million dollars) and another 16,000 contracts expiring in April of next year.
The negotiated rates were 6.433% and 6.513% in contracts for January 2025 and 6.369% and 6.367% for April of the same year.
According to information from the Central Bank itself, the operation aimed to “maintaining the regular functioning of the foreign exchange market, given the demand for foreign exchange instruments resulting from the effects of the redemption of NTN-A3 (National Treasury Note, subseries A3) on 4/15/2024“.
These securities that the authority refers to are papers with a nominal value updated by the variation in the selling price of the dollar. The proximity of maturity can generate a disproportionate search for foreign currency in the market and put pressure on the exchange rate.
The strategy, however, does not seem to have managed to stop the appreciation of the American currency against the Brazilian currency, even on a day of weakening of the dollar against the world’s main currencies. The DXY index, which compares the United States currency with a basket of currencies from developed countries, has been trading lower since 6 am (Brasília time).
Furthermore, in a survey of 23 emerging currencies, only eight lost to the American currency in this Tuesday’s session, the 2nd, with the real among them.
The Central Bank has not yet announced whether there will be new extraordinary auctions for “maintaining the regular functioning of the foreign exchange market”.
Tags: intervention dollar rises real
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