The dollar followed the performance abroad and also lost strength against the real with US GDP in line with expectations (Image: Getty Images/ Canva Pro)
On a busy day in Brazil and abroad, the dollar in cash (USDBRL) lost strength and remained below the R$5.50 level. The promise of new stimulus in China, the improvement in projections for Brazilian GDP and economic data in the United States put pressure on the currency this Thursday (26).
In comparison with the real, the North American currency ended negotiations at R$ 5,4447 (-0,57%)
Performance followed the trend seen abroad. The DXY indicator, which compares the dollar to a basket of six global currencies, closed down 0.37%.
What moved the dollar today?
The dollar lost strength on a day busy with local and foreign data.
In the domestic scenario, the market reflected the Quarterly Inflation Report (RTI).
The Central Bank improved its projection for an increase in Gross Domestic Product (GDP) to 3.2% this year, but expects the economy to slow down next year.
In the document, the BC also stated that inflation projections rose throughout the horizon presented in comparison with the analysis carried out in June, thus increasing the gap in relation to the target.
In Itaú's assessment, the RTI reinforced the reading that the recently started interest rate hike should extend over the next few months, towards the bank's projection of Selic at 12% per year at the end of the monetary tightening cycle .
Abroad, new measures to stimulate China's economy reduced the strength of the dollar. The government announced that it will make a new round of announcements to boost the Asian giant's activity.
Chinese leaders have promised to implement “necessary fiscal spending” to meet this year's economic growth target of approximately 5%, as the country faces a sharp drop in the property market and weak domestic demand.
O Central Bank of China (PBoC) had already announced on Tuesday (24) its most aggressive monetary easing since the pandemic, signaling cuts in a wide range of interest rates and a liquidity injection of 1 trillion yuan (US$140 billion) into the financial system, among other measures.
The announcement caused an improvement in the global perception of consumption in China, the largest importer of raw materials on the planet, boosting assets in several markets, including shares 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 iron ore — which increased by more than 4% today.
Additionally, investors reacted to new economic data in the USA.
The GDP of the world's largest economy expanded at an annualized rate of 3.0% in the second quarter, in line with market expectations.
Growth in the first quarter was revised upward to a rate of 1.6% from the previously reported 1.4% pace.
The country's Labor Department also reported that the number of initial jobless claims fell to 218,000 in the week ending September 21, below the expectations of economists polled by Reuters, who had expected an increase to 225,000, from a revised 219,000 claims for low in the previous week.
The data moved bets on a 50 basis point cut by the Federal Reserve in November slightly lower, from 57.4% (yesterday) to 52.8% today, as it did not show further weakening of the labor market. , which the US Central Bank seeks to avoid with the monetary easing cycle.
Still on the international agenda, investors await the Price Index for Personal Consumption Expenditures (PCE) — an inflation reference for the Fed —, which will be released tomorrow (27).
*With information from Reuters