On Thursday, the US dollar made a modest comeback against the Brazilian real, closing with a slight increase after fluctuating throughout the day.
Initially, the dollar weakened, influenced by unexpected job market data from the US, prompting investors to lean towards riskier assets.
Yet, as the afternoon approached, the currency found its footing, ending at 5.0526 reais, a 0.21% rise.
Trading on the B3 saw the nearest dollar futures contract edge up by 0.04%, landing at 5.062 reais by 5:23 PM.
Market optimism had been brewing since Wednesday, fueled by updates on US service sectors and Federal Reserve Chair Jerome Powell’s insights.
Powell’s nuanced take on interest rate adjustments underscored the balancing act of timely monetary interventions.
This anticipation played a part in the dollar’s dip against the real, hinting at potential interest rate cuts next year.
Thursday’s labor statistics from the US Department of Labor stirred the market with an unexpected rise in jobless claims.
This news prompted investors toward riskier ventures, initially weakening the dollar against the real to a midday low of 5.0048 reais.
Experts noted the market’s sensitivity to Powell‘s comments, especially against the backdrop of prevailing inflation and economic data.
Key Brazilian ministers confirmed positive market reactions to Petrobras’s planned extraordinary dividend payouts.
This news sparked greater interest in Brazil’s riskier assets.
Despite these movements, the dollar reclaimed its strength in the late afternoon, especially against the real, peaking at 5.0549 reais.
This resurgence coincided with escalating military tensions internationally.
By late afternoon, the dollar index, measuring against six major currencies, edged down slightly by 0.01% to 104.210.
Despite mixed movements, Brazil’s Central Bank highlighted a positive foreign exchange flow of $1.752 billion in March.