Dollar falls back to 5.50 to the Brazilian real after interest rate hike in the euro zone

The ECB decision and the expectation that the U.S. Federal Reserve (Fed) will meet next week led to capital flight from emerging markets such as Brazil, putting pressure on local currencies. The dollar hit its highest level since January 24, when it closed at R$5.50, and is down just 1.4% from the end of 2021.

By
Richard Mann
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On another day of domestic and foreign tensions, the dollar approached R$5.50 and closed at its highest level in six months. The stock market rose for the fifth consecutive session, supported by the recovery of U.S. equity markets.

The trading dollar closed at R$5.496 on Thursday (21), up R$0.036 (+0.65%). The rate fell in the first hour of trading, reaching the daily minimum at R$5.43 shortly before 10 am.

However, after the European Central Bank (ECB) raised the key interest rates in the eurozone by 0.5 percentage points, which . . .

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