Dollar Exceeds R$4.28 Hitting Historic High – Central Bank Intervention Unlikely

According to JP Morgan, the Central Bank is signaling that it is comfortable with the exchange rate at current levels; volatility will be key to defining next steps.

RIO DE JANEIRO, BRAZIL - The dollar once again topped its historic high, exceeding R$4.28 on Friday, January 31st, reflecting the market's latest risk aversion factor: the coronavirus.

The disease's potential impact on the global economy, which was classified as a global health emergency on Thursday by the World Health Organization (WHO), continues to frighten the market, which is looking for less risky assets and exiting the emerging ones.

This was one of the reasons for the drop in the Brazilian real by around six percent in January, the second worst performance among emerging nations, losing only . . .

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