With minimum at R $ 5,6470, the cash dollar ended the trading floor at low of 0.70%, to R $ 5,6480, lower closing value from April 3 (R $ 5,6281), the day after the Donald Trump tariff
The fell down throughout the afternoon, punctured the floor of R $ 5.65 and amended on Monday (28), the seventh consecutive trading floor. With a minimum of R $ 5,6470, the cash dollar ended the trading session down 0.70%, to R $ 5,6480 – lower closing value from April 3 (R $ 5,6281), the day after the rate announced by. The border accumulates devaluation of 4.11% in the last seven trading sessions, which leads to losses in the year to 8.1%.
Real has been appreciated despite the negative day for its main Latin American pairs, Mexican and Chilean pesos, and the external environment marked by little risk to risk, in the face of the absence of concrete signs of commercial negotiations between US and China. Operators claim that the Brazilian currency may have benefited from punctual flow of external resources for the scholarship and domestic fixed income. One point that caught the eye was the speech of Central Bank President Gabriel Galipolo, reiterating on Monday the discomfort with inflation expectations.
The perspective of at least another rise in the Selic rate and maintenance of restrictive field policy by prolonged period not only increases the attractiveness of Carry Trade operations, but discourages the maintenance of US currency positions against the real.
Dollar behavior thermometer compared to a basket of six strong currencies, especially euro and yen, the DXY index retreated and pierced the floor of 99,900 points again. The American currency fell compared to most emerging currency and commodity -exporting countries. In April, Dollar Index descends more than 5%.
In the episode of Monday of the trade war, Treasury Secretary Scott Bessent has shown optimism with Asian trade negotiations, citing Japan and South Korea, but considered that negotiations with China are more complicated and will have to be “conducted separately.” Bessent again said that it is up to the Chinese to reduce commercial tensions, as the current level of tariffs “is unsustainable.”
On the Chinese side, the Foreign Ministry said there was no recent dialogue between President XI Jinping and Trump – and that the two governments are not trying to close an agreement. “If the US really want to solve the problem through dialogue and negotiation, they need to stop threatening and blackmailing,” said Ministry spokesman Guo Jiakun. On Friday, in an interview published by Time, Trump said Xi had called him.
Here, after the speeches seen as Dovish of BC directors Nilton David (monetary policy) and Diogo Guillen (economic policy), the tone of BC president on Monday at an J. Safra event sounded a little harder to investors and may have contributed to the exchange rate retreat.
Galipolo stated that the BC has a reasonable certainty that the Selic rate is on considerationist level, but still tries to understand if the interest is already restrictive enough. “We are groaning here to understand if the level we are walking -important the gerund here -if the level we are walking is coming to the contractionist level enough for the convergence of inflation,” he said.
*With information from Estadão Content
Posted by Carolina Ferreira
