The Brazilian real is falling dramatically on Thursday, following last night report that President Temer was taped authorizing payments to silence former coalition ally. The currency tumbled as much as 10% and then recovered modestly.
During the last hours USD/BRL has moved around 3.33/38. The currency remains under pressure, as Brazilian assets.
The newspaper that reported last night, O Globo, posted now that Temer has decided to resign as early as today. According to the media, it has already talk with some officials about it. But the President himself just said that he will not resign and added that he has nothing to hide.
Central bank acts
The Brazilian central bank said earlier today that it was monitoring today’s events. Then announced a new tradition currency swap auction, with the likely objective to limit currency volatility.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.