USD/BRL jumped more than 7% on bribery scandal

Eren Sengezer FXStreet

The Brazilian real lost more than 7% against the USD, pushing the USD/BRL pair to its highest level since late 2016 at 3.3700. The pair gained more than 2000 pips after a recent report by one of the country's biggest newspapers accused President Michel Temer of bribing imprisoned former house speaker Eduardo Cunha in exchange for his silence regarding a long-running corruption investigation.

Following the real plunge, the Central Bank of Brazil called for an FX swap auction and said that it will continue to monitor the markets. Furthermore, IBOVESPA Futures Index lost more than 10.0%.

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Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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