Central bank intervenes but does not prevent new rise in dollar
Central Bank headquarter
Despite Central Bank's interventions, US dollar closed Wednesday (Sep. 23) with a strong rise, breaking a new historical record, sold at R$ 4.146, up 2.28%.
In early morning, the dollar saw a slight fall, reaching R$ 4.017 but reversed the trend already in the morning. In early afternoon, the central bank announced three auctions on the foreign-exchange market: auction of currency-swap contracts (selling dollars in future market), an auction of new reverse currency swap contracts, which has not been held since April, and a repurchase auction of $2 billion of international reserves under repurchase agreements. But they were not enough to stop the rise in the price.
The international situation has also contributed to the currency turbulence. China reported that the country's industrial production in September reached its lowest level in six years. And President of the European Central Bank Mario Draghi said the slowing growth in emerging market economies may weaken Europe's recovery.
* Data from Agência Lusa were added to this story
Translated by Amarílis Anchieta
Fonte: Central bank intervenes but does not prevent new rise in dollar
