Brazil’s Real Falls 8.2% to 5.42 per Dollar as B3 Resets Limits

Brazil’s real fell 8.2% to 5.42 per dollar after spot trading opened Oct. 26, as B3 revised limits for foreign-exchange trading and Ibovespa futures.

The Brazilian exchange set the fluctuation limit for Ibovespa index futures at -20% and the foreign-exchange limit at 12%. Brazilian real futures also plunged to their lower trading limit.

The spot quote and futures move refer to different instruments: the real reached 5.42 per dollar in spot trading, while a real futures contract hit its lower limit. B3’s changes covered currency trading and contracts tied to the Ibovespa, Brazil’s stock index.

The figures distinguish the reported spot exchange rate from exchange-set limits and futures performance. The 5.42 level was the spot rate; the -20% and 12% figures were trading limits, and the real futures contract separately fell to its lower limit. B3’s changes addressed both foreign-exchange trading and Ibovespa futures.