SAO PAULO, Dec 3 (Reuters) - Brazil’s central bank on Monday sold over half of the currency swaps it offered in an auction, strengthening the country’s currency, the real, from around its weakest levels in over 3-1/2 years.
The central bank said in a statement it had sold 21,800 swaps maturing on Jan. 2, 2013, of an offer of 40,000 contracts. The currency swaps are derivatives that emulate the selling of dollars in the futures markets.
Brazil’s currency, the real, gained shortly after the auction and was trading 0.87 percent stronger at 2.1116 reais per U.S. dollar. It slumped on Friday after weaker-than-expected economic growth data suggested the government would let the currency depreciate to prop up the economy.