Dollar rally halts after July US labor market data
The U.S. dollar’s recent rise against other currencies, including the Brazilian real, came to a pause after the release of U.S. employment data for July.
During the week, the dollar flirted with levels above R$ 4.90 due to a spike in U.S. Treasury yields, leading to the dollar’s global appreciation.
However, the employment figures, showing a weaker job growth than expected, caused the market to adjust this dynamic, with 33 of the most liquid currencies, including the real, gaining value against the dollar.
As of the time noted, the commercial dollar was down by 1% to R$ 4.8492, but still on track for a weekly gain of over 2.5% against the real.
This week, the yields of U.S. Treasury bonds increased, boosting the dollar globally.
Latin American currencies were among the most affected, influenced by China’s recovery pace and the direction of U.S. monetary policy.
Foreign investors’ dollar-bought positions in Brazil reached a new high, reflecting concerns about Treasury yields and greater bets on the American currency.
The reliance on U.S. economic data continues, with the Consumer Price Index (CPI) expected to provide further insight into future trends.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief