Brazil's Real Closes Slightly Stronger
SAO PAULO--Brazil's currency gained slightly against the dollar Thursday, as banks jostled ahead of month-end swaps expiry and investors mulled the possibility of more intervention by central banks in Europe and the U.S.</br></br>Late Thursday, the real traded at BRL2.0444 to the dollar, according to Tullett Prebon via Factset, fractionally stronger than BRL2.0472 late Wednesday.</br></br>The market was focused on the regular month-end battle among the banks over the Ptax rate, which is used to settle futures contracts. Some $4.1 billion in dollar-swap contracts sold in late June will mature Sept. 3, with the expiration of an additional $1.8 billion on Oct. 1, according to data on the central bank's website.</br></br>There has been speculation the central bank might roll over currency swaps that expire Thursday, although through the session on Thursday, those expectations declined.</br></br>The currency market was also wary of activity in the U.S., with Federal Reserve Chairman Ben Bernanke set to speak Friday at the Federal Reserve Bank of Kansas City's annual economic symposium. The market is looking for hints from Mr. Bernanke that the Fed may launch a new round of quantitative easing--although that hope was fading Thursday afternoon.