Futures Market News
Brazilian real rises against dollar
May 25, 2012 12:53 PM
The Brazilian central bank has auctioned off thousands of currency swaps over the past four days as the real hit its lowest point in three years on Wednesday. The bank only managed to sell 14,000 of the 40,000 swaps contracts, but the auctions had the desired effect of helping to support the real's value, if only slightly.
"The central bank is offering more swaps than the market is absorbing," Darwin Dib, chief economist at CM Capital Markets Asset Management, told Bloomberg. "If investors aren’t buying all the swaps offered in the auction, it’s because they aren’t very convinced that this level of the real is sustainable."
The real has lost more against the dollar than any of the top-traded currencies in the world, falling 6.6 percent even after gains early Friday brought it above two real per dollar.
The Wall Street Journal reports that the country has suffered significantly from market uncertainty surrounding the ongoing Greek debt crisis.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: TAS Live Room FREE VIP Pass
Enjoy interactive training on Market Profile®, volume analysis & the TAS Tools indicator package!
Daniels Trading is rolling out the red carpet for you. With your complimentary VIP Pass, you’ll enjoy access to the popular TAS Live Room. Your VIP Pass provides admittance to the next Tuesday morning live training session (8:30am-10:30am CT, Chicago).
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.