Brazil central bank holds auction to buy dollars

Brazil's central bank said on Thursday it would hold an auction to buy dollars on the spot foreign exchange market as part of an ongoing effort to boost international reserves.

The Brazilian real BRBY was 0.36 percent weaker at 1.677 per dollar shortly after the announcement. The real, which closed on Tuesday below 1.7 to the dollar for the first time since May 1999, has already gained more than 6 percent this year after rising 20 percent in 2007.

The central bank resumed the purchase of dollars in October, after two months of interruption of the foreign exchange market. He has already bought greenbacks every day for many months, helping to lift Brazil to the highest reserves of around $ 190 billion.