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To: energyplay who wrote (67260)	8/11/2005 2:33:23 PM
From: elmatador	Respond to of 74559

"Brazil purchased almost $13 billion in 3 months through March 16, helping weaken the real, after exporters and government officials, including President Luiz Inacio Lula da Silva, said the currency needed to weaken." President Lula is paying the exporters and the industrial community for the support they are giving him during this tme the politicians are "shooting" at him to destabilize him! Real floor seems to 2.4 / USD. Brazil Real Falls on Bank Dollar Auction: World's Biggest Mover Aug. 11 (Bloomberg) -- Brazil's real tumbled as much as 2.7 percent, the biggest fluctuation of any currency today, after the central bank today sold reais for dollars at an auction for the first time in five months. The bank purchased almost $13 billion in three months through March 16, helping weaken the real, after exporters and government officials, including President Luiz Inacio Lula da Silva, said the currency needed to weaken. The bank probably acted today after the real's 15 percent gain in 2005 failed to dent record trade surpluses, said investors such as Geraldo Travaglia at Uniao de Bancos Brasileiros SA. ``We hadn't seen any effect of the exchange rate on the trade balance, so probably the bank just wante to regulate the market a little bit,'' said Travaglia, an executive director at Brazil's No. 3 non-state bank, said on a conference call after the bank's announcement. ``The bank has its own objectives to reduce debt. It's an attractive exchange rate to make an investment in reais.'' The real fell 1.9 percent to 2.3215 per dollar at 1:40 p.m. New York time, compared with 2.2782 yesterday, paring its gain in 2005 to 14.4 percent, still the best performance against the dollar among the 16 major currencies. Earlier, it plunged to 2.3395. Yesterday, the real reached a 40-month high of 2.2670. Brazil's central bank said it sold reais for dollars at a price of 2.2980 per dollar in an auction today, the first reais- for-dollar auction since March 16. The bank on Dec. 6 resumed auctions halted in February 2004, following calls from Lula, Trade Minister Luiz Furlan and executives such as Banco Bradesco SA's Jose Guilherme Lembi de Faria for steps to stem the dollar's slide, undercutting exporters' profit margins. Central bank President Henrique Meirelles said the bank was buying dollars to bolster its foreign reserves and wasn't seeking to weaken the currency. The bank at the time had forecast its net foreign reserves, or reserves excluding International Monetary Fund loans, would fall to $22.45 billion by year-end from $24.2 billion in November. Since then, the net reserve level has increased to $40.5 billion at the end of last month, still less than half the $70.4 billion the central bank had in June 1998. The yield to the 2015 call date on Brazil's benchmark 11 percent bond maturing in 2040 fell to 8.18 percent, while the yield to maturity fell to 9.18 percent, according to JPMorgan Chase & Co. The bond's price rose 0.10 cent on the dollar to 119.00. The world's biggest movers are based on changes in price or yield and are screened for the size of the market and amount of daily trading. To contact the reporters on this story: Elzio Barreto in Sao Paulo at ebarreto@bloomberg.net; Guillermo Parra-Bernal in Sao Paulo at at gparra@bloomberg.net