Brazil real jumps as central bank extends intervention program
RIO DE JANEIRO, June 25 (Reuters) - Brazil's real gained 0.8 percent on Wednesday and tested the level of 2.20 per dollar after the central bank announced it will extended its currency intervention program, without changes, through the end of the year.
The central bank said late on Tuesday it will sell until Dec. 31 as much as $200 million worth of currency swaps in daily auctions from Mondays through Fridays - the same amount it currently offers to investors seeking protection against possible currency losses.
The real gained as much as 0.85 percent to 2.2060 per dollar in the first minutes of trading as the steady supply of swaps is likely to reduce demand for dollars in the country.
Supported by the constant central bank intervention, the Brazilian currency has been trading largely within 2.2 and 2.5 per dollar over the past few months. (Reporting by Walter Brandimarte Editing by W Simon)
© Thomson Reuters 2017 All rights reserved.