Dollar Soars to R$5 but Closes at Record R$4.78

RIO DE JANEIRO, BRAZIL – The dollar closed bullish on Thursday, March 12th, in another day of market turmoil after the World Health Organization (WHO) classified the outbreak as a pandemic and after US President Donald Trump banned travel from Europe to the United States for 30 days.

The US currency climbed 1.41 percent to R$4.7882 on closing, renewing a record high nominal close (excluding inflation). On opening, it climbed more than six percent and reached R$5.0277 for the first time, a record intraday nominal maximum.

The dollar’s bullish intensity declined throughout the day after the Central Bank (BC) announced two extra cash dollar auctions of up to US$2.25 billion and after the New York Federal Reserve (Fed) said it would offer an additional US$1.5 trillion through bond repurchase operations to provide liquidity and relief to the markets.

The tourism dollar closed at R$ 5.0033, excluding IOF (Tax on Financial Operations). In foreign exchange offices, the dollar was sold above R$5.10, with the price for prepaid card purchases exceeding R$5.30.

Source: G1