Brazil holds third auction to buy dollars

SAO PAULO, May 12 (Reuters) - Brazil's central bank said on Monday it would hold its third auction to buy dollars on the spot foreign exchange market as part of an ongoing effort to boost international reserves.

The Brazilian real BRBY gained more than 1 percent to 1.665 per dollar shortly after the announcement. The bank said it had to cancel the two other auctions announced earlier because of glitches as banks placed wrong offers.

The central bank has been buying dollars almost daily since October, helping lift Brazil's reserves to about $195 billion.

(Reporting by Fabio Gehrke, Translated by Elzio Barreto)