SAO PAULO: The Brazilian real strengthened on Monday as an emerging market selloff triggered by US President-elect Donald Trump's unexpected victory lost more steam.
The real firmed 0.9 percent, extending gains to 2.5 percent in four sessions after touching a five-month low on Nov. 14. Other Latin American currencies, such as the Mexican peso , also rose.
The rebound allowed Brazil's central bank to reduce its currency intervention following two weeks of heavy action.
Seeking to curb volatility, the bank had offered new traditional currency swaps, which function like selling dollars to investors for future delivery, nearly every day since Nov. 11.
The bank has not announced any such auction for Monday, but it will offer swaps to roll over contracts maturing next month.
The National Treasury also refrained from announcing a bond repurchase auction for this session after doing so for the last three trading days. Nevertheless, global risk appetite drove down local bond and rate future yields.
In a statement, the Treasury said it would keep monitoring market conditions, "seeking to guarantee bond markets will function properly."
Brazil's benchmark Bovespa stock index rose 1 percent, supported by a gain in shares of state-controlled lender Banco do Brasil SA.
The bank said late on Sunday that it would close 402 branches, downsize another 379 and give early retirement to employees to save up to 3.05 billion reais ($908 million).
Shares of miners and steelmakers, such as Gerdau SA and Cia Sider?rgica Nacional SA also extended their recent rally on hopes that Trump's plans of heavy infrastructure spending could support prices of industrial metals.
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