Brasília – For the fifth consecutive day, the dollar price went up, this time by 0.61%. Thus, it reached BRL 3.701 by the end of the day, the highest value in 26 months. The hike took place one day after the Monetary Policy Committee (COPOM) of the Brazilian Central Bank (BC) decided to maintain the benchmark interest rates at 6.5% per year.
The hike came even though the Central Bank made adjustments to its foreign exchange market operations over the past few days. Other emerging countries, like Mexico and Turkey, also saw their currencies lose strength against the dollar today.
Economista Sílvio Campos Neto, with consulting firm Tendências Consultoria, said the forex market is adhering to an external pattern of pressure favoring the dollar. “Basically, one of the factors is the continuation of this pressure, which is a reflection of the trend toward high future interest rates in the USA,” he explains.
Translated by Sérgio Kakitani & Gabriel Pomerancblum
