When asked about the historical dollar exchange rate of 4.20 rubles. Jair Bolsonaro offered reporters the name of the president of the central bank to explain the growth of the American currency.
247 – Jair Bolsonaro declined to comment on the growth of the trading dollar, which closed on Monday at the highest price of all time – $ 4.20. However, the government did not predict market prospects, especially after disappointment with foreign participation in the auction. excess onerous purpose.
"Dollar? The conversation … Do you want Roberto Campos's phone? ”He answered reporters, ridiculing the question and ending the conversation in front of Alvorad’s palace. In response, he referred to Central Bank President Roberto Campos Neto. Bolsonaro then stopped to speak with supporters.
More on the dollar quote in a Reuters report:
The dollar exceeds $ 4.20. And has a historic maximum against external and local problems.
Jose de Castro (Reuters) – On Monday, the dollar closed at a record high, exceeding 4.20 reais at auction, at a negative session for emerging currencies, as doubts affected the US-China trade situation.
In Brazil, the dollar appreciation continued to be reinforced by the lack of expectations of a significant short-term capital inflow after disappointment with foreign participation in the auction for excess concessions in early November.
Upon completion of trading on the spot market at 17:00, the dollar rose by 0.30% to 4.2061 real for sale. As a result, the price remained behind the previous closing record – 4195 reais on sale, September 13, 2018.
In B3, where futures trading continues until 6:15 pm, the most liquid dollar contract rose 0.26% to 4.2110 reais around 17:30.
At the maximum of the futures market, the currency was 4.2130 real. In the spot segment, the peak of the day was 4.2102 reais on sale.
The dollar report is valid when considering nominal rates (excluding inflation) in the spot market.
As for trading (intraday) quotes, the historical maximum for the interbank dollar is still at around 4.25 real, the level reached on September 24, 2015, a few days after the rating agency S & P was downgraded. Brazil's sovereign credit rating in speculative degrees.
The high dollar in this session followed the movement observed during the month. In November, the currency grew by 4.91%, more than compensating for the fall in October (-3.52%) and on the way to the maximum monthly growth since August (+ 8.51%).
The combination of disappointment at the November 6 salt auction, social upheaval in Latin America, and local and foreign political noise, still subject to trade uncertainty, led the currency to rise amid a number of other emerging markets.
At this session, the biggest highs of the dollar were against the Mexican peso, the South African rand, the Philippine peso, the Chilean peso and the Colombian peso – all developing currencies.
In its report, Credit Suisse draws attention to the impact of expectations on possible central bank intervention in the exchange rate. According to a Swiss bank, any expectation of BC results at this time could be frustrating, which could give the dollar more inspiration.
In addition, credit strategists talk about the "spread" of option structures with barriers above 4.20 reais, which, in the event of a break, can lead to an acceleration of the dollar.
“The asymmetric nature of the directed risks for expectations of the intervention, combined with the disappointment of the oil auction, makes us afraid of attempts to minimize the strength of the dollar from current levels,” the professionals say.
However, some in the market do not consider the dollar at a nominal historical record a sign of a more risky Brazil. “The exchange rate has long lost control of country risk. The dollar is responding to many other problems, including external ones, ”said Bruno Marquez, XP Asset multi-marketing fund manager.