Dollar hits R$ 5.83 for the first time in history despite the tension of the global economy with the expansion of the coronavirus
At 12:10 pm this Thursday (7) the dolar was traded to R$ 5.8886, up 1.08%. Coming so far at the high of R$ 5.8616. going up through seventh consecutive session.
The dollar (tourism) was traded around R$ 5.86, disregarding the IOF charge (Tax on Financial Operations). THEpost tumble of 7% in the previous session.
Covid-19 is turning the world upside down
The day before, the dollar closed at a high of 1.10%, at R$ 5.8507, renewing a nominal closing record (without considering inflation). Reaching R$5.86 at the highest of the session, so far the highest intraday nominal price ever recorded in the country. This month the dollar accumulated a high of 3.36%. In 2020, it grew by 10,75%
Coronavirus and global tension
Last Wednesday (7), the number of cases of the coronavirus pandemic increased, with confirmation even of an infected person in Brazil. Fears grow over the impacts of the virus on the economy.
“The impact of the coronavirus remains an unknown and a threat to the world economy”, summarized in a note Jefferson Rugik, from Correparti Corretora, citing protection movements.
Due to the large flow of capital to less risky markets, the dollar continues to appreciate against other currencies around the world, especially against the currencies of emerging countries such as Brazil. It also gains strength against the Mexican and Chilean pesos, Turkish lira, and South African rand. In relation to strong currencies, it had a sharp drop of 0.28%. Losing almost 0.5% against the yen, a sign of caution in the international environment.
Central Bank Strategy
In an attempt to limit the rise in the dollar, the Central Bank held an extraordinary auction of up to 20,000 traditional swaps on the trading floor. Due in August, October and December of this year 2020.
“The market was already counting on this auction, so it was nothing new,” said economist Silvio Campos Neto. This limited the ability of the Central Bank to curb the US currency.
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Source: G1 news
