Dollar closes in fall with partial sale of swaps by the Central Bank – ólemë Journal

The dollar closed lower on Tuesday (22), returning to R $ 3.60, after the Central Bank sell only partially the supply of reverse currency swaps, which account for future purchase of dollars for the second consecutive day .

Until last trading session, the currency had fallen 10.54 percent at end March. The benchmark index of the continent, the Euro Stoxx 50, advancing 0.29%, while the London Stock Exchange recorded value of 0.1%, in Paris, the high is 0.21% and in Frankfurt, 0, 57%.

Since the futures contract for April retreated 0.68% to R $ 3.601. At minimum, was R $ 3.5757. The monetary institution did not promote such an operation for 3 years.

The central bank also reduced for the second time this month, the supply of traditional foreign exchange swap contracts -equivalent to the future sale of dollars, the opposite of reversos- swaps maturing in April.

The central bank has offered only up to 2.5000 traditional swaps at auction this session, compared to 3.6000 before.

The central bank announced on month would reduce rollovers and indicated that should replace only about 75% of the lot April after seven consecutive full rolls. With the full sale of 3.6000 traditional swaps last session, the Central Bank has already rolled to all equivalent to US $ 6.527 billion, or about 65% of the total batch, corresponding to US $ 10.092 billion.

the action of the BC, according still experts also served as a quick gateway to investors who had bet on the high of US currency and were caught off guard by the recent fall.

However the continued operation cast doubt on the monetary authority’s strategy.

Some speculated operators that the Central Bank could have in view a floor for the currency, seeking to prevent quotes too low harm exporters and foreign accounts.

“the BC makes it clear that is attentive, but will act only in so far as there is demand,” said the operator of a major national bank.

“the market knows that the Fed wants to spawn a large stock so pressing charges,” the operator.

Until then, some exchange market participants had understood the CB in the last two sessions as a way to probe the interest of investors for contracts reverse currency swap .

the central bank currently manages stock equivalent to just under US $ 110 billion in traditional swaps.

the high dollar this session also came in line with the exchange rate movement abroad.

Operators also quoted the meeting of the PMDB on Tuesday , which must decide by the break with the government, and the possible decision of the Supreme Court (STF) on the tenure of former President Luiz Inacio Lula da Silva as chief minister of the Civil Cabinet as events that kept the caution board on Thursday -feira before Friday.

“the probability of interest back to rise in the uS has increased” holiday, wrote analysts Guide Investimentos brokerage in a note to clients. Many operators proofreading their expectations for US monetary policy after two Federal Reserve officials encourage expectations of at least two increments of 0.25 percentage point in interest this year.