Despite today’s advance, the currency ends the week with a drop of 0.74%, after a 5.56% decrease in January
It gained strength throughout the afternoon of Friday (7) in the domestic market and ended the session in moderate discharge, close to the technical level of R $ 5.80. Despite today’s advance, the currency ends the week with a drop of 0.74%, after a 5.56% decrease in January. The border accumulates devaluation of 6.26% in the year. The wave of risk aversion caused by the news that the president intends to announce reciprocal tariffs for business partners, weighed against the Brazilian currency. The new episode of the soap opera of tariffs led to a global round of strengthening the American currency that eventually contaminated the emerging currency. Fears that Trump’s protectionist policy results in inflationary pressures lead to a reduction in interest in the cut of interest by the federal reserve this year. With the discharge of commodities such as oil and iron ore, the dollar played a minimum of R $ 5,7354 in the first stage of business.
Integral Group chief economist Daniel Miraglia notes that, given the dollar fall in recent weeks, there was room for profits in the local market, which seems to have been triggered today by the worsening mood abroad with a new threat of Imposition of tariffs by Trump. Miraglia, however, sees the Real appreciation movement in 2025 more linked to domestic issues than to the external framework, noting that the DXY index has only a slight drop in the period for the economist, the behavior of the Brazilian currency reflects the prospect of “ alternative scenarios ”that open with the fall of the popularity of President Luiz Inacio Lula da Silva.
*With information from Estadão Content
Posted by Sarah Paula
