The Financial Times reports that the dollar fell over 1% against the Brazilian real on Monday.
This decline aligns with a positive outlook for emerging market currencies.The shift follows news that the Trump administration may implement less aggressive import tariffs in the United States.
The United States currency closed above 6.10 reais, despite its retreat in Brazil.The trading session saw reduced liquidity at the start of the new year.
The spot dollar ended 1.11% lower at 6.1143 reais.
On the B3 exchange, the February dollar contract dropped 1.18% to 6.1415 reais by 5:03 PM.Global markets reacted to a Washington Post report about Trumps advisors.
They are exploring tariff plans that would apply to all countries but focus on critical imports only.Current discussions center on imposing tariffs in sectors deemed vital to national or economic security.
The dollar weakened against most currencies, including the real.Dollar Surges as Brazil Still Awaits Fiscal Fix and Ukraine Tensions Flare.
(Photo Internet reproduction)Investors reduced risk premiums added to exchange rates after Trumps election victory in late 2024.
This move reflected the belief that less strict United States tariffs would benefit commodity-exporting countries currencies.The spot dollar hit a low of 6.0923 reais (-1.43%) at 10:33 AM following the Posts report.
Trump later dismissed the story as fake news, causing the dollar to regain some ground.This market reaction highlights the impact of trade policies on currency values.
It also underscores the interconnectedness of global economies.Investors closely watch political developments for potential effects on international trade and currency markets.
The dollars decline against the real reflects broader market sentiment.Traders appear cautiously optimistic about emerging markets prospects.
However, the situation remains fluid as policy details emerge and global economic conditions evolve.