The real appreciated 2.1 percent to 1.9874 per dollar at the close in Sao Paulo and has risen 1.8 percent since May 18. It touched 2.1062 on May 23, the weakest level since May 2009.
The central bank auctioned 9,000 currency swap contracts due in July and 5,000 due in August. The sales are a reversal from last month’s policy of stepped-up dollar purchases aimed at weakening the currency to help exporters.
“The central bank was very active this week,” said Eduardo Galasini, head of proprietary trading at Banco Banif, in a phone interview from Sao Paulo. “The bank is showing that it’s concerned with the risk that the drop in the real could have an effect on inflation. The bank wants a weaker currency, but not so weak that it increases inflation.”