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The dollar soared against the real on Wednesday (28), on a day of decision by the Monetary Policy Committee (Copom) on Brazil’s interest rate and with investors seeking safety amid the strong spread of Covid-19 in general. economies and the upcoming US presidential election.
At 9:42 a.m., the US currency rose 1.57%, selling at R $ 5.7750. At the maximum so far, it reached R $ 5.7795, the highest intraday price since May 18 (R $ 5.8025). See more quotes.
On Tuesday, the dollar closed 1.26% higher, at R $ 5.6885. In the partial of the month accumulates an increase of 1.20%. In the year it increased 41.80%.
The Central Bank announced for this trading session a traditional swap auction to accumulate up to 12,000 contracts maturing in April and August 2021, according to Reuters.
- Why the real is the currency that depreciated the most in 2020
The new peak of Covid in Europe is already beginning to impact the number of deaths
Abroad, the surge in coronavirus cases sparked fears that lockdowns in Europe would hamper economic recovery. Uncertainties weighed ahead of the US elections.
“Global markets appear to be incredibly nervous, the mixed spike in Covid-19 cases and deaths and the possible shutdown in France add to the uncertainty ahead of the US elections. And we have this very weak track record,” he said John. Woolfitt, Commercial Director of Atlantic Capital Markets.
Here, the Monetary Policy Committee (Copom) of the Central Bank announces this Wednesday, around 6 pm, the new basic interest rate, and the expectation of the financial market is that the Selic rate will remain at 2%, despite food price pressures skyrocketed.
The growing concern about the country’s fiscal situation and the sustainability of public accounts, as well as the government’s ability to advance a reform agenda, continue to dominate the attention of investors, pointing out as the main factors of pressure on the real.
The interest rate at historic lows also makes Brazil less attractive to international investors, reducing the flow of dollars for financial investments in the country, which also contributes to a higher exchange rate.
