On Wednesday, the US dollar showed little change in Brazil, ending the day almost unchanged.
This stability came amid mixed global signals, leaving investors waiting for a clear direction.
The spot dollar ended slightly up by 0.10%, at 4.9681 reais. Throughout February, it has gained 0.60%.
By the end of trading in the B3 market, the future dollar contract edged up 0.06% to 4.9765 reais.
In the morning, dollar movements were tight, with changes under 2 cents. Investors were eyeing any news that might shift the market, but none came.
US Federal Reserve officials later hinted at possible rate cuts later in the year, not in March as some expected.
Neel Kashkari from the Minneapolis Fed predicted up to three cuts, depending on the job market’s strength.
The Boston Fed’s Susan Collins believes current policy is appropriate, while the Fed’s Adriana Kugler calls for more inflation certainty before rate reductions.
These insights lifted Treasury yields and slightly strengthened the dollar against other currencies later on.
In Brazil, the dollar moved from a low of 4.9529 reais to a high of 4.9751 reais.
Fernando Bergallo of FB Capital observed a shift towards equilibrium in the dollar’s value, influenced by Treasury yield increases.
This period marks one of the lowest volatility levels seen in recent weeks.
By late afternoon, the dollar index, a measure against six currencies, had dropped 0.08% to 104.060.
Brazil’s Central Bank reported a significant primary deficit for 2023, impacting the national debt ratio.
Additionally, the Central Bank renewed currency swap contracts, and the Foreign Trade Secretariat reported a substantial January trade surplus, significantly higher than last year.
This financial landscape underscores the complexities influencing the Brazilian real’s stability against the dollar.