Dollar today soars at the opening of business after Trump’s victory

by Andrea
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The price of the commercial dollar soared when business opened in Brazil. Around 9:07 am this Wednesday (6), the North American currency was sold at R$5.86, an increase of almost 2%. The rise occurred after Republican Donald Trump’s victory in the North American elections.

After opening, the selling price of the dollar began to fluctuate between R$5.83 and R$5.84 in the first 30 minutes of trading of the day. It then lost steam, reaching R$5.79 at around 10:20 am, an increase of 0.7% over the previous day’s closing price.

which means that the Fed – the North American central bank – can maintain relatively high interest rates for longer. This increases the attractiveness of Treasuries, US debt securities, causing the migration of resources there and strengthening the dollar in relation to other currencies.

The upward movement of the dollar was observed since the beginning of this Wednesday in Asian markets, which were already open while Trump’s victory was still not certain. One of Trump’s proposals is to raise import tariffs to protect North American companies foreign competition and attract investment in the country. The Republican signaled that he would charge tariffs of 60% on Chinese products and 10% on goods from other countries.

Dollar has risen in recent weeks with US elections and Lula government accounts

In recent weeks, the US currency had already been rising in Brazil due to the financial market’s dissatisfaction with public accounts. Last week, the government’s delay in presenting a spending cut package.

Lula met with ministers at the beginning of the week to define spending cuts. At the request of the president, the head of the Treasury, Fernando Haddad, canceled his trip to Europe. On Monday (4), Haddad said that the adjustment would probably be announced this week. So far, however, the government has not set a date.

This Wednesday morning, Haddad told journalists that the debate in the government on cost containment had concluded. “The ministers are all very aware of the task that lies ahead,” he said.

According to him, the measures will be sent to Congress and Lula should talk about the matter with the presidents of the Chamber, Arthur Lira (PP-AL), and the Senate, Rodrigo Pacheco (PSD-MG).

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