Friday, December 5, 2008

Brazil central bank sells $32 mln in forex swaps

SAO PAULO, Nov 28 (Reuters) - Brazil's central bank sold about $32 million in dollar swaps in an auction on Friday as part of an ongoing effort to add liquidity and reduce volatility in the foreign exchange market.

The bank sold just 650 of 6,000 contracts on offer in the auction, marking the third time it has intervened in the currency market on Friday. Earlier, it sold an unspecified amount of dollars on the spot market in two auctions.

Brazil's currency, the real BRBY, was trading almost unchanged from Thursday's close at 2.28 per dollar shortly after the swap auction. It had weakened as much as 2.6 percent earlier in the session. (Reporting by Fabio Gehrke, Writing by Todd Benson; Editing by Tom Hals)

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