The US dollar climbed to R$5.84 this morning, extending its rally amid global trade tensions and domestic market shifts.On Thursday, the currency closed at R$5.8293, up 0.47% for the day, according to Money Times.
This marks a 1.73% weekly gain for the dollar, though it remains down 5.66% in 2025.The surge followed former US President Donald Trumps tariff announcements, which rattled global markets.
Trump confirmed that a 25% tariff on European goods and a 10% tariff on Chinese imports would take effect on March 4.These measures heightened fears of escalating trade barriers, prompting investors to seek safety in the dollar.
Brazils markets showed mixed reactions.
The Ibovespa index edged up 0.09%, closing at 124,882 points despite external pressures and falling commodity prices.The real fluctuated throughout the day, hitting an intraday low of R$5.7963 before peaking at R$5.8387 in the afternoon.
Domestically, Brazils January CAGED employment report provided some positive news with 137,303 new formal jobs created, well above expectations of 51,508.Dollar Hits R$5.84 as Trumps Tariff Moves Shake Global Markets.
(Photo Internet reproduction)While this highlights economic resilience, it also raises speculation about further interest rate hikes by Brazils Central Bank to combat inflation.
Globally, the US Dollar Index rose to 107.25 points on Thursday, supported by strong US economic data and increased consumer spending.Brazilian Real Under Pressure Amid Dollar StrengthThis broader dollar strength added pressure on emerging market currencies like the real, which remain vulnerable to external shocks.
Technical analysis indicates that USD/BRL faces resistance at R$5.85 and support near R$5.78.The Relative Strength Index remains neutral at 51.36, suggesting no immediate overbought or oversold conditions.
Emerging market ETFs recorded net outflows as investors reduced exposure to riskier assets amid rising global uncertainties and expectations of higher US interest rates.Analysts predict USD/BRL will trade between R$5.75 and R$5.85 today.
This movement is driven by external factors like US-China relations and domestic monetary policy signals.While Brazils labor market shows strength, global trade tensions and dollar dominance pose challenges.
These factors continue to weigh on the real in an increasingly volatile environment.