Fear Of Worker's Party Closing In Election Makes US Dollar Soar

The currency skyrocketed and closed at R$ 4.19170 after surpassing R$ 4.20 during trading

Tássia Kastner
São Paulo

Two days after Fernando Haddad became the official presidential runner for the Worker's Party (PT), the financial market reacted to the perspective that voters from former president Lula will automatically go to the new candidate by taking the US dollar to R$ 4.20.

The American currency went up on Thursday (13th), reaching R$ 4,1970. Without adjusting for inflation, is the highest closing current exchange since Plano Real. In real terms, however, the exchange is far from the highest ever, which would be around R$ 6.

The US dollar currency exchange reached R$ 4,20, the highest in over 20 years, with the perspective of Haddad leading the presidential race - Marcello Casal Jr/Agencia Brasil

One thing helped fuel the instability on the trading floor yesterday: new numbers from an opinion poll paid by Central Única dos Trabalhadores (CUT, an association of workers' unions).  

The survey showed Haddad leading with 22% of voting intentions, followed by Jair Bolsonaro, with 18%.

It's been the only poll so far that didn't show far-right Bolsonaro in the first position after Lula left the race.

In the Datafolha poll from Tuesday (11th), Bolsonaro is first with 11%; Haddad with 9%, tied with Ciro Gomes (PDT), Marina Silva (Rede) and Geraldo Alckmin (PSDB).
This climate of political uncertainty caused Brazil to suffer in an otherwise positive day for global financial markets.

Translated by NATASHA MADOV

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