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Brazil real ends firmer as dollar-pegged debt sold

SAO PAULO: The Brazilian real ended firmer Monday after the Central Bank supplied the market with dollar-pegged debt, easing demand for the US currency and taking pressure off the real, traders said.

The real closed at 1.785 per dollar, 0.78 percent firmer compared with its Friday finish of 1.799. The currency started the day weaker as an expiry in dollar futures contracts pressured the spot market, but the real regained strength after deals linked to the maturity were completed, traders said.

The real was also boosted by the Central Bank's sales of 500 million reais in NBC-E dollar-indexed debt. The monetary authority auctioned the debt to help investors roll over older NBC-Es that were falling due.

"The sale of the foreign exchange notes (NBC-Es) helped reverse the real's weakening trend," a trader said.

The real strengthened 1.18 percent against the dollar this month after markets overcame fears of a year-end liquidity crunch. -Reuters