What a day for the Real – USD closes at R$3.99

After a dramatic opening of the US dollar at R$4.23, an all time high, the Brazilian currency rebounded and the US dollar closed at R$3.99. A 5% swing from high to low. It gives you an idea of the tremendous uncertainly the country and economy are suffering. Can you imagine being a multinational CFO and trying to explain to HQ what is going on?

The turn around was caused by comments from Central Bank President Tombini, threatening that if necessary, the monetary authorities will use the U$378 billion in international reserves to cool the currency market and stop the speculation. It seems it was enough for market agents to take profits and send the US dollar below the psychological mark of R$4.00. But tomorrow is another day…..