USD/BRL surges to fresh record highs above 5.70 after Justice Minister Moro resigns

The Brazilian real came under strong selling pressure on Friday after Brazilian Justice Minister Sergio Moro announced his resignation citing political interference in law enforcement.

Moro explained that President Bolsonaro has insisted on changing the head of the federal police since the second half of 2019 and added that Bolsonaro wanted a federal police chief who would provide him with direct intelligence.

Market reaction

Brazils Bovespa Index fell sharply on this development and was last seen down nearly 7% on the day. Meanwhile, the USD/BRL pair shot to a fresh all-time high of 5.7126 before retreating slightly. As of writing, the pair was up 2.3% on the day at 5.66.