USD/BRL consolidates 7% gain; President Temer says will not quit

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.