Is a dollar bounce in the cards??
Monday, December 6, 2004 • Posted by jcb
After today’s central bank action could we finally see the much anticipated dollar rally? We hope so!
Brazil Central Bank Buys Dollars at 2.715 Reais (Update1)
Dec. 6 (Bloomberg) — The Brazilian central bank bought an undisclosed amount of dollars from financial institutions, the first time it has purchased the U.S. currency since February 4, the bank said in a statement.
The bank paid financial institutions a maximum 2.715 reais per dollar in a transaction that took place between between 10:55 a.m. local time (7:55 a.m. New York time) and 11:05 a.m., a bank spokeswoman who requested anonymity said from Brasilia.
The bank said on Nov. 24 it plans to buy as much as $2.4 billion worth of dollars through June 2005 to pay maturing debt and bolster international reserves. The currency weakened as much as 0.7 percent to 2.7270 to the dollar after the purchases. It had gained as much as 0.5 percent earlier on the day.
“If the central bank buys reserves now it will definitely have an impact on the exchange rate,” said Paulo Leme, chief emerging markets economist for Goldman, Sachs & Co. at a seminar in Rio de Janeiro.
To contact the reporter on this story:
Guillermo Parra-Bernal in Sao Paulo at at gparra@bloomberg.net
To contact the editor responsible for this story:
Laura Zelenko at lzelenko@bloomberg.net
update Wednesday, December 8th 2004
Looking good so far…
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