Dollar rises sharply and Brazilian Central Bank shells out $5.3 billion to hold it down

In its strongest intervention of the year, almost twice the size of
the last one on September 22 ($2.7 billion), the Brazilian Central Bank
offered over 100,000 exchange rate swap contracts on Monday, October 3,
which is the same thing as selling dollars. The swap auction was worth a
total of $5.3 billion.

The amortization dates are November, this year (over 30,000 contracts),
and January (over 22,000 contracts), April (almost 44,000 contracts)
and July (over 10,000 contracts) of next year.

The dollar surged to R$1.92 at 3:30 pm when the Central Bank placed the
swap contracts on the market. The dollar fell to R$1.892, an increase
of 0.56%, compared to the close on Friday, September 30.