SAO PAULO, Feb 3 (Reuters) - Brazil’s central bank has no plans to change its currency intervention program, which it may extend beyond March, a senior member of the government’s economic team told Reuters on Tuesday.
Some traders speculated that the bank could wind down its interventions after Finance Minister Joaquim Levy suggested on Friday the government had no intention of keeping the currency stronger than the market would naturally dictate.
“There’s nothing to that ... It was a bad comment on a bad day,” the source said on condition of anonymity.
Brazil’s currency fell 3 percent against the dollar on Friday and slipped another 1 percent on Monday to near its lowest in a decade, despite attempts by the finance ministry to walk back Levy’s comments.
On Friday, the central bank announced it would start rolling over currency swaps that expire in March, indicating it intended to keep a steady supply of currency hedge to investors next month. (Writing by Brad Haynes; Editing by Peter Galloway)