Brazil central bank holds spot dollar auctions for third straight session
Recasts after second spot auction
SAO PAULO, Dec 17 (Reuters) -Brazil's central bank held spot U.S. dollar auctions for the third consecutive session on Tuesday, as the local currency continues to weaken against the greenback amid market concerns over government spending.
The Brazilian monetary authority sold a total $3.29 billion in two separate spot auctions called on Tuesday, according to statements, after having sold $1.63 billion on Monday. It also deployed a similar move on Friday.
The first auction came early in Tuesday's session after the Brazilian real BRBY weakened past 6.14 per dollar.
The monetary authority initially sold $1.27 billion in the spot market, but the move had little effect in taming the sharp depreciation of the local currency, which pared some losses as the auction was announced but quickly traded back down.
Just after the real hit the historic intraday low of 6.20 per U.S. dollar, the central bank called a second auction in which it sold $2.02 billion.
The real was trading down 1.2% at 6.16 per greenback after the second intervention.
Reporting by Gabriel Araujo and Fernando Cardoso; Editing by Susan Fenton and Bill Berkrot
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