Increase was 5.09% against the dollar; ranking with 27 currencies shows Israeli New Shekel in the lead
A survey by the consultancy, carried out with 27 currencies, shows that the real had the 2nd biggest appreciation against the dollar since the beginning of the conflict in the Middle East on February 28th.
Until the end of the 1st week of May, the increase was 5.09%. Since Friday (May 8), the North American currency has been at R$4.89, the lowest in more than 2 years.
The real lagged behind the new Israeli shekel, which rose 8.28% in the period.
As happened after, the real appreciated against the dollar. One of the reasons is the increase in oil prices. The rise in the price of oil and other commodities encourages exports and
The increase in oil prices also contributes to Brazil’s public accounts. Government (PT) revenue from royalties must be increased, enabling stimulus measures.
The contractionary monetary policy also contributed to the appreciation of the real. Even after 2 consecutive cuts by the (Central Bank) of the Selic from 0.25 pp (percentage point) to 14.50%.
According to the president of the monetary authority, Gabriel Galípolo, the “conservative” decisions created a “fat” to cut interest rates, leaving the country well placed in the scenario.
Brazilians (differential between Selic and inflation) are among the largest in the world. They provide more security for the real and attract foreign capital. Investors borrow money from countries with lower rates to invest where rates are higher.
Data from the end of April show that, year-to-date, B3 recorded a positive result of R$56.54 billion, more than double last year’s total of R$25.47 billion.
NEW ISRAELIAN SHEKEL
The coin appears in the lead. The main reason is that investors began to assess that the Israeli economy remained resilient even in the midst of the war, which began with an attack by Israel and the United States on Iran.
Activity in the country is driven by the technology sector, the inflow of foreign capital and financial support from the US.
