Dollar lower after Central Bank intervention
After six straight days of dollar rise, the Central Bank (BC) decided to increase its intervention in the currency market on Friday (Aug. 7). Last night (Aug. 6), US dollar closed the day at R$3.537, up R$0.048 (1.39%). The price reached its highest level since March 5, 2003, when it closed at R$3.555. On Friday (July 31), at around 10am, dollar price was already up to 3,548, 0.30% higher.
The Central Bank stated last night that they will auction as many as 11,000 contracts to roll over currency swaps. The BC have been auctioning about 6,000 contracts.
Dollar price has been rising since the Brazilian economic team announced, two weeks ago, the reduction of the primary surplus target to 0.15% of GDP. According to economists surveyed by Agência Brasil, the possibility of Brazil to lose its investment grade status from credit-rating agencies has pressured the currency. Yesterday, following the release of the drop on President Dilma Rousseff's popularity levels, dollar reached R$3.571.
Fonte: Dollar lower after Central Bank intervention
