Dollar rises after five sessions of decline on a day of technical adjustments in Brazil By Reuters

By Fabricio de Castro

SÃO PAULO (Reuters) – The spot currency interrupted a sequence of five consecutive low sessions and ended Wednesday on a high against the real, amid adjustments in prices and positions in the Brazilian market and a worsening of global markets in the period pm.

The dollar in cash closed the day at 4.9078 reais on sale, up 0.70%. In November, however, the North American currency accumulated a drop of 2.63%.

On B3 (BVMF:), at 17:25 (Brasília time), the first maturity contract rose 0.76%, to 4.9195 reais.

During the morning, the dollar fluctuated higher against the real most of the time, with market participants adjusting positions and taking profits after the most recent declines.

“The day was one of profit making, of correction, a little with help from abroad. If abroad had a weaker dollar, we would also have another day of decline in Brazil”, commented the director of Correparti Corretora, Jefferson Rugik.

The dollar even attempted a new retreat when it reached a minimum price of 4.8713 reais (-0.05%) at 11:40 am, but quickly returned to positive territory.

An operator interviewed by Reuters cited the role of foreigners in purchasing the North American currency in the futures market — the most liquid in Brazil and, ultimately, what defines prices in the spot segment.

During the afternoon, the dollar renewed its session highs, in line with the worsening of stock indices in New York and Brazil. At the session high, at 3:20 pm, the spot currency was quoted at 4.9180 reais (+0.91%).

Until closing, it slowed down again, also in line with the stock indices in New York and São Paulo, which regained some momentum.

In the global currency market, the dollar remained very close to stability at the end of the afternoon against a basket of strong currencies, and was up against most of the currencies of commodity and emerging exporters.

As in relation to the real, the dollar rose against the Colombian peso < COPUSD=R>, the < CLPUSD=R> and the < MXNUSD=R>

At 5:25 pm (Brasília time), the currency — which measures the performance of the US currency against a basket of six currencies — fell 0.01%, to 105.530.

In the morning, the BC sold all 16,000 traditional currency swap contracts offered in the rollover of January maturities.