Iran Press/ America: Moro, a former anti-corruption judge, hit out at 'political interference' with the federal police, saying he could not do his job without 'autonomy' for the force.
The news sparked jitters in the markets with Sao Paulo's stock exchange, the largest in Latin America, plunging more than 8% and the real dropping to a record low of 5.7 against the US dollar.
"I'm going to start packing up my things and send my resignation letter," said Moro, 47, during a long speech in the capital Brasilia in which he accused the far-right Jair Bolsonaro of breaking the promise of a carte blanche.
Mr. Bolsonaro hit back at Moro, accusing him of being motivated by ego and making unfounded accusations.
The president claimed that he had told several lawmakers before Moro announced his resignation: "Today you will see a person who is committed to himself, to his ego, but not to Brazil."
Moro's resignation came after Mr. Bolsonaro sacked federal police chief Mauricio Valeixo, a close ally to Sergio Moro.
"The change at the head of the federal police without a genuine reason is political interference that harms my credibility and that of the government," said Moro.
Moro said that Mr. Bolsonaro had told him he was replacing Mr Valeixo because he wanted someone with whom he had personal contact, whom he could call, ask for information, intelligence reports.
"Providing this type of information is not the job of the federal police," he added, insisting the independence of investigations needs to be preserved.
Mr. Moro revealed that Mr Bolsonaro had said one of the reasons he wanted to replace Valeixo was that he was worried about some ongoing investigations.
"Mr. Bolsonaro's decision to sack Mr. Valeixo against Mr Moro's advice was "a signal that the president wanted me out," said Mr. Moro.
The president claimed Mr Moro had agreed to Mr. Valeixo's replacement in exchange for a place on the Supreme Court.
But Mr Moro hit back, saying his ally's position was never used as currency in exchange for me being named to the top court.
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