The dollar erased the previous day's gains amid a rise in commodities following the announcement of an economic stimulus package in China (Image: Getty Images/ Canva Pro)
O dollar spot (USDBRL) lost strength this Tuesday (23) with the appreciation of commodities and the repercussion of the minutes of the most recent meeting of the Brazilian Central Bank.
In comparison with the real, the US currency ended trading at R$ 5,4628 (-1,31%).
The performance followed the trend seen abroad. The DXY indicator, which compares the dollar to a basket of six global currencies, closed down 0.48%.
What moved the dollar today?
The dollar erased its gains from the previous session, pressured by the appreciation of commodities on a busy day in Brazil and abroad.
On the domestic front, the market reacted to the minutes of the last meeting of the Monetary Policy Committee (Copom). The document maintained the 'more aggressive' stance of the statement and reiterated the dependence on data for the next decision on the Selic rate.
As in the statement, the Committee gave no indication of the pace and total magnitude of the monetary tightening cycle.
Overseas, China's central bank (BPoC) governor Pan Gongsheng said the institution will cut banks' reserve requirement ratio by 50 basis points and the seven-day reverse repurchase rate by 0.2 percentage points to 1.5%, in order to inject more liquidity into the economy and reduce borrowing costs.
Measures aimed at boosting stock purchases and the real estate sector were also announced.
The announcement led to an improvement in global perception of consumption in China, the world's largest importer of raw materials, boosting assets in several markets, including stocks and currencies of countries with deep trade relations with the Asian giant.
Emerging countries and commodity exporters, such as Brazil, were positively impacted by the increase in commodity prices, such as oil and iron ore.
Throughout the week, investors monitor the Quarterly Inflation Report (RTI), the Broad Consumer Price Index – 15 (IPCA-15).
On the international agenda, the week will also be full of data, such as the Personal Consumption Expenditure Price Index (PCE) — the Fed's inflation benchmark — and the US GDP preview.
*With information from Reuters