Asked about the $ 4.20 historical dollar exchange rate, Jair Bolsonaro suggested to reporters that the name of the central bank president should explain the escalation of the US currency.
247 – Jair Bolsonaro declined to comment on the $ dollar hike, which closed on Monday at its highest price ever, at $ 4.20, with no market outlook for the government, especially after frustration over foreign participation in the auction. excess of the cumbersome task.
"Dollar up? Conversation … Do you want Roberto Campos & # 39; phone?", He replied to reporters, mocking the question and ending the conversation in front of the Alvorada Palace. In the reply, he referred to the central bank President Roberto Campos Neto. Bolsonaro then stopped to talk to supporters.
Read more about the dollar exchange rate in the Reuters report:
The dollar exceeds $ 4.20 and is historically high for a closeup with exterior and local issues
By Jose de Castro (Reuters) – The dollar closed at a record high on Monday, above 4.20 reais on sales, in a negative session for emerging currencies as doubts weigh on the US and China trade situation.
In Brazil, the dollar's strength continued to be supported by the lack of expectations of significant short-term capital inflows following the frustration of foreign participation in the surplus auction at the beginning of November.
At the close of trading on the spot market at 17, the dollar rose 0.30% to 4,2061 reais in sales. As a result, the price after the previous record left for a close – of 4,195 reais for sale, September 13, 2018.
In B3, where futures trading is up to 18:15, the most liquid dollar contract increased by 0.26% at 4,2110 reais around 17:30.
At the top of the futures market, the currency was 4.22130 reais. In the spot segment, today's top 4.2102 reais was in sales.
The dollar record is valid when considering nominal rates (not discounted for inflation) in the spot market.
For trading notes (intraday), the maximum time for interbank dollars is still around 4.25 reais, the level reached on September 24, 2015, days after the S&P credit institution was downgraded. Brazil's sovereign credit rating to a speculative degree.
The high dollar during this session followed a movement seen throughout the month. In November, the currency rose 4.91%, more than offset the October fall (-3.52%) and on its way to the highest monthly estimate since August (+ 8.51%).
The combination of disappointment with the November 6 auction before salty, social upheaval in Latin America, local and foreign political noise that is still affected by trade uncertainties has driven the currency, which is still winning against several other emerging markets.
During this meeting, the dollar's biggest heights were against the Mexican peso, the South African rand, the Philippine peso, the Chilean peso and the Colombian peso – all emerging countries.
In a report, Credit Suisse highlights the effects of expectations on possible central bank intervention in the exchange rate. According to the Swiss bank, all expectations of BC's earnings at this time can be frustrated, which can give the dollar more breath.
In addition, credit strategists talk about the "spread" of option structures with barriers above 4.20 reais, which, if broken, could accelerate the dollar.
"The asymmetric nature of directional risks to intervention expectations, combined with the degree of disappointment with the oil auction, makes us afraid to try to minimize the strength of the dollar from current levels," the pros said.
However, the dollar for the nominal historical record is not seen by anyone on the market as a sign of a risk-taker Brazil. “The exchange rate has long since lost its grip on the downside of the country risk. The dollar responds to many other issues, including external issues, "says Bruno Marques, head of XP Asset's multi-market funds.