The dollar fell over 1% on Thursday, dropping below 6.05 reais in a low-liquidity session.
US markets closed for former President Jimmy Carters funeral.
Investors adjusted prices after 2024s excesses amid an empty agenda in Brazil.Reuters reported the spot dollar closed down 1.10% at 6.0431 reais.
On the B3 exchange, the February dollar contract, currently the most liquid, declined 0.87% to 6.0775 reais at 5:02 PM.This week, the US currency fluctuated between strong gains and losses.
Global markets digested the latest news about Trumps tariff plans.
Financial agents worried about the inflationary potential of his measures.The dollar advanced against several currencies on Wednesday, including the real.
A CNN report stated that the president-elect might declare a national economic emergency.
This would serve as legal justification for imposing tariffs on allies and adversaries.On Monday, the US currency had sharply declined.
The Washington Post reported that Trumps advisors were exploring plans to impose tariffs only on critical sector imports.Dollar Dips Below R$6.05 Amid U.S.
Market Closure.
(Photo Internet reproduction)Economists believe Trumps promises could be inflationary.
These include tax cuts and strict immigration control.
This could keep US interest rates high and raise Treasury yields, favoring the dollar.Global and Local MarketsGlobal markets also watch new US economic data.
Employment figures are this weeks focus.
The December jobs report will be released on Friday.Recent indicators have shown US economic resilience.
A healthy job market and inflation above the Federal Reserves 2% target reduce expectations for interest rate cuts this year.Marcos Weigt, Head of Treasury at Travelex Bank, said, Theres concern about the heated job market, inflations slowed decline, and Trumps tariff policies.Operators price a 95% chance that authorities will maintain interest rates at the years first meeting.
Just over 40 basis points of cumulative cuts are expected by year-end, according to CMEs FedWatch tool.In Brazil, the markets main concern remains the fiscal scenario.
This persists even after Congress approved several government-proposed spending containment measures late last year.Investors doubt the governments commitment to balancing public accounts.
They demand new measures to control public debt trajectory and restore the countrys fiscal credibility.