US dollar continues to fall sharply, Brazilian real ranks second in global performance
The US dollar has seen a consistent fall in value, crossing the R$ 4.70 threshold during Friday’s trading session.
This drop has come amidst a general appreciation of most liquid currencies against the American dollar.
The shift can be attributed to a correction from the previous day’s movement and weaker than expected US economic data on income, consumer spending, and inflation.
As of 10 am, the dollar showcased a depreciation of 1.09%, valued at R$ 4.7065, having reached a low of R$ 4.6960 and a high of R$ 4.7291.
Meanwhile, the American currency’s future contract for August was down 0.72% at R$ 4.7110.
Today’s market movement is seen as a partial recovery from yesterday’s tension.
This was driven by stronger US data and rumors about Japan’s Central Bank (BoJ) loosening its interest rate control policy.
Yesterday, the dollar gained globally after a series of indicators pointed towards a resilient US economy.
Today, however, the US consumption, spending, and inflation (PCE) data were in line or below expectations, allaying fears that the Federal Reserve might maintain the interest rate hike cycle.
After the BoJ’s decision, US Treasury yields started to decline, and the dollar depreciated, impacting the global currency market.
As of this morning, the Brazilian real was the second-best performer against the US dollar among a list of 33 currencies tracked by Valor, only trailing behind the Mexican peso.
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