# Folha de S.Paulo - Internacional - En - Business - US Dollar Closes below R$ 3.70 after Major Intervention by Brazilian Central Bank - 22/05/2018

> Brazil's central bank sharply escalated currency intervention on 21 May, offering an additional 15,000 currency swap contracts worth about US$2 billion. The real closed at R$3.668 on the commercial rate after the dollar had risen 5.5% over six sessions on expectations of more US rate hikes. Analysts said the market was respecting the intervention but that it was unlikely to reverse the dollar's longer-term trend.

- Date: 2018-05-22 · published 2018-05-22T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/9715-folha-de-s-paulo-internacional-en-business-us-dollar-closes-below-r-3-70-after
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Central bank support limits near-term real weakness, which slightly supports Brazilian export prices in dollar terms and reduces the pressure on world feed prices from currency-driven selling. Buyers should still expect volatility while the dollar strengthens.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-05-22 | 1 | -2.0% | -3.5 | The central bank's escalated swap intervention of about US$2 billion on 21 May pushed the dollar back below R$3.70, which directly explains the sharp one-day drop in BRL per USD ending 22 May. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-08-27 | [Brazil central bank to continue FX intervention on Wednesday as real nears record low - The Business Times](https://feedsoft.ai/events/57788-brazil-central-bank-to-continue-fx-intervention-on-wednesday-as-real-nears.md) | +0.5% | +0.5% |
| USDBRL | 2017-01-17 | [Brazil real strengthens 1 pct as central bank resumes intervention](https://feedsoft.ai/events/73168-brazil-real-strengthens-1-pct-as-central-bank-resumes-intervention.md) | -1.2% | -3.1% |
| USDBRL | 2021-10-28 | [USD/BRL Points Lower as Brazilian Central Bank Raises Selic Rate by 1.5% \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/44786-usd-brl-points-lower-as-brazilian-central-bank-raises-selic-rate-by-1-5-forex.md) | +0.7% | +0.2% |
| USDBRL | 2017-04-17 | [EMERGING MARKETS-Brazil real jumps on central bank intervention](https://feedsoft.ai/events/71706-emerging-markets-brazil-real-jumps-on-central-bank-intervention.md) | +0.1% | -0.8% |
| USDBRL | 2018-08-30 | [Dollar climbs and Central Bank intervenes - ANBA News Agency](https://feedsoft.ai/events/63748-dollar-climbs-and-central-bank-intervenes-anba-news-agency.md) | +0.6% | -3.0% |

## Sources

- www1.folha.uol.com.br: https://www1.folha.uol.com.br/internacional/en/business/2018/05/1969339-us-dollar-closes-below-r-370-after-major-intervention-by-brazilian-central-bank.shtml

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.