Brazil: political tensions push the dollar higher

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– BRAZIL, AUGUST 19 – The dollar today approached 5.45 reais due to the opening of the Brazilian exchange market, which operates under the influence of the local political landscape and the American Federal Reserve.

The US currency was trading at 5.44 reais, up 1.31% at 9:08 local time (2:08 pm CET), shortly after the start of operations in the Sao Paulo foreign exchange market. Yesterday the dollar closed at 5.37 reais with an appreciation of 1.94%, the highest price since the beginning of May, and accumulating a 3.17% increase in the first 18 days of August.

On the other hand, the Sao Paulo stock exchange closed yesterday with a 1.07% decline, for the third consecutive day of negative transactions.

Faced with this scenario, the Central Bank announced that today it will hold an additional auction of 15,000 dollar futures contracts with maturities in February and July 2022.

Analysts stress that the foreign exchange market is responding “to the escalation of political tensions and government measures that can affect public debt with the increase in spending ahead of the elections” of 2022, reports the G1 news portal. (HANDLE).

News”Latin America”