Dollar exceeds R $ 5 for the first time amid global risk aversion

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The dollar surpassed 5 reais on the morning of Thursday (12), but reduced the rise after action by the Central Bank, with markets seized by risk aversion after US President Donald Trump banned travel from Europe to the United States, aggravating concerns about the economic impact of the coronavirus.

Trump imposed comprehensive travel restrictions from Europe to his country for a month, forcing passengers to reschedule flights and panicking global markets as disease prevention measures disrupt global supply chains, raising the risks of an economic recession.

"Today, the financial markets continue the chaos installed due to the expansion of the coronavirus around the world," Correparti Corretora said in a note. "Yesterday, the WHO recognized the disease as a pandemic, which served to deepen the feeling of risk escape by investors. In addition, the ban given by the American president (...) serves to further deepen the dismantling of markets. "

At 9:43, the dollar advanced 5.23%, to 4.9676 reais on the sale, and, at the maximum of the day, touched the historical record of 5.0287 reais.

Meanwhile, the most traded dollar futures contract was up 2.55%, to 4.8465 reais

The Central Bank held a cash sale auction of up to $ 2.5 billion this Thursday, in which it sold 1.278 billion, after canceling the announcement of the sale of up to 1.5 billion made the previous day.

After the dollar soared to more than 5 reais, the BC announced a new auction of up to 1.25 billion in cash, selling only 332 million.

In the last session, the US currency closed up 1.61%, to 4.7207 reais on the sale, the second highest closing price in history.

Source: Notícias Agrícolas