Dollar expands high and goes to R $ 4.70 accompanying abroad after WHO declare pandemic

The dollar extended its rise against the real on Wednesday, surpassing 4.70 reais after recording the biggest drop in six months in the previous session, following the lower appetite for risk abroad after the World Health Organization characterized the coronavirus as pandemic. At 14:23, the dollar advanced 1.27%, to 4.7049 reais on sale, and at the maximum of the day touched 4.71 reais. The dollar's most liquid futures were up 1.14%, at 4.7075 reais. Around the world, investors took a more cautious tone as they followed the rapid expansion of the coronavirus outbreak, especially after the World Health Organization on Wednesday defined the disease as a pandemic. The coronavirus has already forced several governments and central banks to announce emergency measures to prevent the disease from leading to a new economic recession, but doubts remain about its efficiency. U.S. President Donald Trump said on Tuesday he will ask Congress for a tax cut on wages and other "very important" stimulus moves, but details are still unclear. As U.S. officials look for ways to deal with the coronavirus outbreak, the Trump administration is considering cutting taxes, Democratic presidential candidates are canceling events and the Governor of New York State is saying that the federal government "stumbled on work." "The discussion now turns to the implementation schedule of this package – when and how much will actually be implemented, and whether other countries will follow these steps and apply incentives to support the economy," XP Investimentos said in a statement. Abroad risk aversion strengthened Japanese yen and Swiss franc, two assets sought in times of financial or geopolitical caution. At the same time, the real's main peers -- the Mexican peso, Turkish lira and South African rand -- extended their losses against the dollar, yielding between 0.7 and 1.7 percent. The lack of clarity of Trump's measures contributed to this movement, according to Commcor DTVM, and the movement contaminated the Brazilian currency. In the domestic scenario, the Central Bank continues to intervene in the foreign exchange markets, but stopped offering a dollar in sight, as it had done the day before. On Wednesday, the municipality sold 20,000 traditional swap contracts maturing in August, October and December 2020. Bc, the day before, sold 2 billion dollars in spot currency, which helped the U.S. currency to fall 1.69%, to 4.6457 reais in the sale, the highest daily low since September 4, 2019.