2023-07-15 23:10:43
© Reuters. Dollar rises to R$ 4.7950 this Friday, but retreats 1.46% in the week
The dollar today in sight advanced 0.10% against the real this Friday, the 14th, to R$ 4.7950, interrupting the sequence of three days in decline until last Thursday, the 13th, but without reversing the losses in the week (-1.46%). According to traders, foreign inflows kept the currency high, despite stronger gains in the index (+0.22%) and falls close to 2% in prices.
These opposing vectors led the American currency to fluctuate less than four cents against the Brazilian currency between the low of R$ 4.7770 (-0.28%), registered around 10 am, and the high of R$ 4.8148 ( +0.51%) observed in the early afternoon. At the closing time of the spot market, the contract for August was quoted at R$ 4.8105, down 0.01%, with financial turnover close to US$ 13 billion.
“The dollar basically circulated between slight highs and lows, now trying to keep up with the appreciation abroad – where it had gains in relation to peers and some emerging currencies and linked to commodities -, and now responding to an average day of demand for risk in the market international market”, says Correparti director Jefferson Rugik. “There is also a flow, because it reached up to R$ 4.81 and, at these levels, the exporter enters selling.”
The US currency sustained high against its peers and emerging currencies and commodity exporters – among them, the real – during most of the morning and early afternoon, supported by preliminary data of consumer sentiment from the greater United States than expected in July and the country’s rising one- and five-year inflation expectations.
Combined with tougher statements by Federal Reserve (Fed) leaders, these factors served to moderate the drop in expectations for the trajectory of Americans. After weaker US inflation data, the market began to consider that the Fed’s tightening cycle should end after a last high of 25 basis points on the next 26th, which led to a strong global devaluation of the dollar – the DXY fell below 100 points for the first time in 15 months – and the strengthening of the real in the last two days.
For the chief economist at Frente Corretora, Fabrizio Velloni, the slight increase in this Friday reflects a movement towards the realization of accumulated profits in the week and the adjustment of expectations for the next steps of monetary policy in the USA. That, combined with falling commodities, created a negative environment for the real during the session, he says.
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