The Central Bank of Brazil called new spot dollar auctions on Thursday, in a bid to boost the local currency after it hit record lowsat a time when the country is dealing with a financial market crisis.
The monetary authority sold US$3 billion early in the day, in an auction that was announced late on Wednesday. The measure did not help the real much, and was followed by the call for a second sale of up to US$5 billion.
The Brazilian real strengthened 1.9%, to 6.1704 reais per dollar, after the second intervention was announced and after falling early in the day.
The currency of Latin America’s largest economy hit a record low on Wednesday, as local stocks also fell as markets roiled over a wide budget deficit and uncertain government spending plans. The cost of insuring Brazil’s debt against default rose to its highest level since May 2023.
