Dollar soars as Real’s performance worsens amid fiscal risks

The main concern is the potential renewal of the emergency aid with no spending cut compensation.

RIO DE JANEIRO, BRAZIL - The dollar closed up on Tuesday, Februry 9th, with the market showing concerns of more public spending with no fiscal compensation. This prompted another worst global performance for the Real, despite Central Bank intervention and the sale of US$1 billion in the derivatives market.

This Tuesday, the U.S. currency rose 0.192% against the Real, and closed the day trading at R$5.389. At its peak, the currency reached R$5.4483 (+1.41%), before dropping to R$5.3546 (-0.33%) after Central Bank intervention.

The Real not only led the losses . . .

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