Currencies
Brazil Real Swings on Fiscal Woes, Central Bank Interventions
- Real recovers after central bank FX swap auction, dollar sale
- Budget deficit well above forecast adds to fiscal concerns
Some traders had expected the real to get a boost Friday from the central bank’s first intervention in spot markets in years.
Photographer: Andre Borges/BloombergThis article is for subscribers only.
Brazil’s real trimmed earlier losses in a day marked by steep swings after the central bank announced it would intervene in the currency market for the second time today, offsetting concern over the nation’s deteriorating fiscal outlook.
The real is down 0.1% after the central bank’s said it would auction up to 30,000 FX swaps, the equivalent of almost $1.5 billion. The move comes on top of a dollar spot sale earlier in the day, the central bank’s first intervention in years.