U.S. dollar rises against Brazilian real amid global strength
The U.S. dollar started Monday’s session on a decline but quickly recovered to rise against the Brazilian real.
This movement is in line with the global appreciation of the U.S. dollar and is occurring in another session where U.S. Treasury yields are advancing.
The economic calendar is quiet, and news flow is limited in the morning.
Financial market participants are likely to focus on potential remarks from Federal Reserve members or on decisions and progress in Brazil’s economic agenda in Congress.
At 11 am, the commercial dollar was trading up 0.31% at R$4.8898, while the future contract for September showed an appreciation of 0.23% at R$4.9105.
Internationally, the DXY Index, which measures the dollar’s strength against a basket of six developed market currencies, was up 0.10% at 102.116 points.
Last week, the real weakened against the dollar.
Over the last five sessions, the U.S. currency advanced 3.03% against the Brazilian currency, amid several factors boosting U.S. Treasury yields and contributing to the global appreciation of the dollar.
However, Friday’s U.S. job market data limited the dollar’s climb. Today, the rise in Treasury yields again supports the global appreciation of the U.S. currency.
Investors should remain watchful of U.S. 10-year and 30-year Treasury auctions, which may relieve the yield rally.
This week also focuses on price indicators in Brazil (IPCA, on Friday) and the U.S. (CPI, on Thursday).
Today, the schedule is quite international.
In Brazil, expectations were centered around the inflation projection from the Central Bank’s Focus report.
This report was expected to provide the first reading on price rise prospects after the Monetary Policy Committee (Copom) cut the basic interest rate by 0.50 percentage point last week.
However, the figures remained mostly unchanged, with a minor change from 3.89% to 3.88% in the IPCA for 2024.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
-0.79%
60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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