The US dollar remained steady against the Brazilian real, closing the week almost unchanged after nearing R$5.00. This movement followed unexpected US inflation data.
The dollar concluded at R$4.9675 ($0.9995), dropping slightly by 0.02%. During a week shortened by Carnival, it gained 0.16%.
At Brazil’s B3, the leading dollar futures fell 0.13% to R$4.9740 ($0.999) late Friday.
Market players stayed cautious all week, despite global shifts in expectations for US monetary policy.
Early Friday, the US reported a January Producer Price Index (PPI) rise of 0.3%, surprising economists who anticipated a modest 0.1% climb.
This increase, along with recent CPI and Import Price Index figures, suggests a potential delay in Federal Reserve rate cuts.
In response, the dollar in Brazil reached R$4.9902 ($1.002) by mid-morning, influenced by global reactions.
Exporters sold dollars as prices approached R$5.00, noted Jefferson Rugik from Correparti Corretora.
This action, coupled with a softening US dollar globally, led to a midday low of R$4.9602 ($0.996) in Brazil.
The dollar hovered near stability for the day’s remainder as traders awaited the US President’s Day holiday closure.
By late afternoon in Brazil, the dollar index edged up 0.04% to 104.300.
The Brazilian Central Bank also played a role, selling 13,000 out of 16,000 offered swap contracts for April rollovers.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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