SAO PAULO, Brazil, June 10 (Reuters) – The Brazilian real extended its losses against the U.S. dollar on Monday, falling more than 1% to its lowest level in a year and a half, as fiscal concerns caused Investors will seek the safety of the US currency.
The Brazilian currency weakened 1.2% to 5.3887 per dollar on the session, its lowest intraday level since early January 2023, before paring some losses.
Traders cited lingering uncertainty after rumors circulated on Friday that Finance Minister Fernando Haddad had made worrying comments about Brazil’s fiscal situation in a private meeting.
Some market players privately suggested that Haddad had indicated greater risks of the government abandoning its current fiscal framework. The minister later denied the rumours, which he described as “irresponsible and inaccurate”.
“Markets don’t like uncertainty or fiscal disorder, and at the moment there is no optimism about either of them,” said Eduardo Moutinho, an analyst at Ebury Bank. (Reporting by Luana Maria Benedito; Spanish editing by Javier López de Lérida)
Reuters
