Dollar Closes at New Record High of R$5.84 after Brazil Slashes Basic Interest Rate

Paulo Guedes says the collapse of the Brazilian economy has also contributed to the U.S. currency's bullishness.

RIO DE JANEIRO, BRAZIL - The dollar closed higher against the real on Thursday, May 7th, after the Monetary Policy Committee reduced the basic SELIC rate by 75 basis points to three percent per annum.

The cut, more aggressive than expected by the market, pushed the dollar higher by 2.4 percent and it closed at R$5.840, setting a new closing record. The tourism dollar climbed 2.5 percent to R$6.08 . . .

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