Bolsonaro Comments On Currency

USDBRL traded through some highs at 5.4550 to reach it's highest level since Feb 1^st. Despite the immediate Real weakness, USDBRL has reversed and is currently 0.4% weaker on the day.

The slightly firmer BRL could be attributed to comments made by Bolsonaro on the currency:

• Bolsonaro said the currency depreciation in Brazil creates insecurity and alienates investors. If the dollar goes down, fuel prices are also likely to fall, he added. In his view, U.S. dollar is currently at a high level and should return to around 5 reais. "Reducing gasoline prices is very difficult," he said.
• It is worth noting that current trading levels are in close proximity to where the central bank have previously intervened. This, combined with the outright mention of a level for the pair, may be inspiring caution from USDBRL bulls.