The dollar surpassed 5 reais this Thursday morning, but reduced its rise after action by the Central Bank, with markets taken by risk aversion after North American President Donald Trump banned travel from Europe to the United States. United States, worsening concerns about the economic impact of the coronavirus.
Trump imposed sweeping restrictions on travel from Europe to his country for a month, forcing passengers to rebook flights and sending global markets into panic as disease prevention measures disrupt global supply chains, raising the risks of an economic recession.
“Today, financial markets continue the chaos caused by the spread of the coronavirus around the world,” Correparti Corretora said in a statement. “Yesterday, the WHO recognized the disease as a pandemic, which served to deepen the feeling of risk avoidance by investors. Furthermore, the ban given by the North American president (…) serves to further deepen the dismantling of the markets.”
At 9:43, the dollar advanced 5.23%, to 4.9676 reais on sale, and, at the day's high, touched the historical record of 5.0287 reais.
Meanwhile, the most traded dollar futures contract rose 2.55%, to 4.8465 reais
This Thursday, the Central Bank held an auction for the sale of up to 2.5 billion dollars in cash, in which it sold 1.278 billion, after canceling the announcement of a sale of up to 1.5 billion made the previous day.
After the dollar soared to more than 5 reais, the BC announced a new auction of up to 1.25 billion in cash currency, selling only 332 million.
In the last session, the North American currency closed at a high of 1.61%, at 4.7207 reais on sale, the second highest closing price in history.
Source: Notícias Agrícolas
