Dollar resumes gains with inflation and foreign forecast; US currency closes at R$5.47 – Money Times


dollar - real

The dollar appreciated again against the real amid uncertainty over the trajectory of the Selic rate after a preview of weaker inflation (Image: Getty Images/ Canva Pro)

O dollar spot (USDBRL) gained strength again in Brazil and abroad with inflation data in focus. Despite the appreciation, the currency remained quoted below R$5.50.

In comparison with the real, the US currency ended trading at R$ 5,4761 (+0,24%).

The performance followed the trend seen abroad. The DXY indicator, which compares the dollar to a basket of six global currencies, closed up 0.51%.

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What moved the dollar today?

The dollar recovered some of the previous day's losses.

In the domestic scenario, the market reacted to the Broad National Consumer Price Index 15 (IPCA-15).

The preview of inflation official registered an increase of 0.13% in September, against 0.19% in August.

In Itaú's assessment, the data came in significantly below expectations and with a “much better opening than expected, especially due to the bearish surprise in underlying services”.

“On the other hand, underlying services linked to labor and food outside the home remain well behaved, despite the tight labor market,” writes economist Luciana Rabelo, in a note.

Abroad, new measures to stimulate China's economy have reduced the strength of the dollar. In a move that began the day before, the Central Bank of China The PBoC announced a further reduction in the one-year medium-term lending facility (MLF) rate for some financial institutions from 2.30% to 2.00%.

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 iron ore — which rose more than 4% today.

Throughout the week, investors monitor the Quarterly Inflation Report (QIR).

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

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