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EMERGING MARKETS-Brazil real up as Tombini warns of intervention
November 22, 2012 / 1:10 PM / in 5 years

EMERGING MARKETS-Brazil real up as Tombini warns of intervention

RIO DE JANEIRO, Nov 22 (Reuters) - The Brazilian real gained about a quarter percentage point on Thursday after central bank chief Alexandre Tombini said policymakers stand ready to intervene in the foreign exchange market.

Tombini told lawmakers in Brasilia that the central bank may “provide liquidity” to the foreign exchange market at the end of the year, a period when dollars are traditionally more scarce in Brazil.

The real gained 0.27 pct to 2.0885 per dollar. It had closed Wednesday at 2.0944, its weakest level in three-and-a-half years and near the ceiling of a tight trading range of 2.0-2.1 per dollar where it has been stuck since early July.

In the past several months, the central bank has resorted to a series of traditional and reverse currency swap auctions -- which emulate, respectively, the sale and the purchase of dollars in the futures market -- to keep the currency within that range.

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