Brazil offers to sell traditional currency swaps; real rallies

RIO DE JANEIRO Mon Jan 28, 2013 8:44am EST

RIO DE JANEIRO Jan 28 (Reuters) - Brazil's central bank on Monday offered to sell as much as 37,000 traditional currency swaps, derivative contracts that mimic the sale of dollars in the futures market.

The real jumped as much as 0.8 percent after the announcement, as investors saw the offer as a sign that policymakers want a stronger real to help fight inflation.

The contracts, which will expire on March 1, will effectively roll over an equivalent number of traditional swap contracts that mature on Feb. 1.