Dollar surpasses R$4 amid chaos in Bolsonaro's government.
The dollar opened sharply higher against the real on Thursday, even surpassing the R$4 mark at the opening, with political tensions between the Executive and Legislative branches back in focus, raising concerns about pension reform; At 9:11 AM, the currency was up 0,86%, at R$3,9884 for sale, having hit the R$4,0165 mark in the first few trades.
SAO PAULO (Reuters) - The dollar opened sharply higher against the real on Thursday, even surpassing the 4 real mark at the opening, with political tensions between the Executive and Legislative branches back in focus, raising concerns about pension reform.
At 9:11 AM, the dollar was up 0,86 percent, at 3,9884 reais for sale, having hit the 4,0165 reais mark in the first trades. The dollar last closed at 4 reais in October of last year.
The previous day, the currency rose 2,27 percent to 3,9545 reais on the sell side. The dollar futures contract fell 10,5 percent.
The Central Bank announced that it will hold an auction this Thursday for up to 1 billion dollars in a currency sale operation with a repurchase commitment, seeking to inject new money into the market and ease pressure on the dollar.
It will also auction up to 14,43 traditional currency swaps, corresponding to the future sale of dollars, to roll over the April maturity, totaling 12,321 billion dollars.