November 10, 2022 12:43 GMT
BRL Plummets At Open As Media Speculate Over Finance Minister Pick
- The Brazilian real has come under severe pressure at the open along with DI swap rates amid renewed fears for the fiscal trajectory and as media begin to speculate over who Lula may choose to become economy minister.
- Local media reported President-elect Luiz Inacio Lula da Silva is currently favouring former Sao Paulo mayor Fernando Haddad to be his finance minister. Folha de Sao Paulo reported Haddad, the defeated Workers’ Party Sao Paulo governor candidate, is among the top contenders for the finance ministry and other media outlets also reported Haddad is Lula’s top choice.
- USDBRL is up roughly 2.5%, extending last week’s bounce from the psychological 5.00 mark. Initial resistance at 5.2483, Tuesday’s high, has been breached which now places a greater focus on 5.4083, the post-election high.