Dollar soars and is approaching 4.90 reais due to external pressure
This Thursday morning, the spot dollar was soaring against the Brazilian real, part of a global trend in strengthening the American currency, which is particularly affecting Latin American currencies.
In addition to external factors, the recent decision by the Monetary Policy Committee (Copom) might be influencing the local exchange rate.
As of 11:05 AM, the commercial dollar was trading at an increase of 1.76%, at R$ 4.8884, after having touched a low of R$ 4.8423 and reached a high of R$ 4.8969.
At the same time, the future contract for September was showing an appreciation of 1.53%, at R$ 4.9115.
Moreover, the dollar was advancing 1.73% against the Mexican peso, 1.38% against the Chilean peso, and 1.13% against the Colombian peso.
A foreign exchange operator from a financial institution stated that despite Copom’s decision being a point of focus in the movement of other assets, the primary factor affecting the real today is external, with yields on U.S. Treasury bonds strengthening again.
He commented, “It’s the external movement that is weighing more on Latin America. It seems more like a technical correction of the recent [appreciation] wave.”
He also added, “We must remember that the region’s currencies have a high beta, meaning they are more sensitive to global risks and their consequences, especially since volatility had been at its lows.”
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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