The dollar interrupted its sequence of falls against the real with the devaluation of the yen after the Bank of Japan kept interest rates unchanged (Image: Getty Images/ Canva Pro)
After a busy week of monetary policy decisions, the dollar spot (USDBRL) ended the day by interrupting a sequence of seven consecutive falls.
In comparison with the real, the US currency ended trading at R$ 5,5209 (+1.78%) this Friday (19). During the week, the currency fell 0.83%.
The performance followed the trend seen abroad. The DXY indicator, which compares the dollar to a basket of six global currencies, closed up 0.15%. But with the interest rate cut in the United States, the index ended the week down 0.34%.
What moved the dollar today?
The dollar against the real followed the trend abroad, with the recovery of the US currency.
Without important economic data to generate pressure, the dollar received a slight boost from the Bank of Japan's monetary policy decision, which decided to keep its short-term rate at 0.25%.
Bank of Japan Governor Kazuo Ueda said the country's economy was advancing in line with forecasts, with rising wages boosting consumption and keeping inflation on track to sustainably meet the 2 percent target.
The Bank of Japan ended negative interest rates in March and raised short-term interest rates to 0.25% in July, in a marked shift from a decade-long stimulus program aimed at boosting inflation and economic growth.
As a result, most of the US currency's strength abroad came from its relationship with the yen.
In emerging markets, the US currency was also helped by weaker commodity prices, including iron ore and oil, which hurts countries that export raw materials, such as Brazil.
Commodities have suffered as the economic outlook for China, the world's largest importer of raw materials, continues to worsen and is facing a domestic demand crisis.
*With information from Reuters