The dollar rose sharply against the Brazilian real on Tuesday as financial markets resumed trading after an extended holiday and a turbulent week for stocks. At around 9:10 a.m. Brasília time, the U.S. currency was up more than 1%, trading at 5.50 reais. It reached 5.5151 reais at one point, its highest level of the session so far.
Investors were watching a meeting of Brazil’s Monetary Policy Committee (Copom), which began Tuesday and is scheduled to conclude on Wednesday, November 4. Central bank officials are set to decide whether to cut, hold or raise interest rates.
Fiscal uncertainty surrounding President Luiz Inácio Lula da Silva’s government was also in focus, particularly questions about the economic team for his next term. Lula was reelected in late October, according to the source report.
Sources: CNN Brasil.