INSUBCONTINENT EXCLUSIVE:
On November 11, 2024, the U.S
dollar concluded trading at R$ 5.7695, marking a 0.56% increase against the Brazilian real
This rise occurred amid a backdrop of lower liquidity in the markets and a global strengthening of the dollar.The broader trend reflects
investor caution regarding economic policies under the new U.S
5.8163 during the session
Such fluctuations illustrate the volatility in foreign exchange markets, driven by both domestic and international factors.The euro also saw
a minor uptick, closing at R$ 6.1461, indicating that while the dollar gained strength, other currencies were not far behind.Around 5:05 PM,
Strengthens Against the Real Amid Global Appreciation and Low Liquidity
(Photo Internet reproduction)The dollar also gained significantly against other currencies: it was up 2.42% against the Chilean peso, 1.76%
against the South African rand, and 1.31% against the Mexican peso.The dynamics of this trading day are rooted in larger economic narratives
Investors are closely monitoring the implications of protectionist policies from the U.S
government under President Trump.These policies could reshape trade relationships and impact emerging markets like Brazil significantly
Domestically, Brazilian financial agents await critical announcements regarding government spending cuts aimed at addressing fiscal
inflation and higher interest rates.Current economic indicators paint a complex picture for Brazil
The country has been grappling with inflation rates that remain above target levels, prompting speculation about future adjustments to the
Selic rate, which currently stands at 10.75%.Economists predict that without substantial fiscal reforms, interest rates could rise to around
13% by the end of the year
The Brazilian economy has shown some resilience, with GDP growth recorded at 2.1% in early 2024.However, this growth is tempered by
challenges such as rising public debt and inflationary pressures
A weaker real can increase costs for imported goods, further fueling inflation and complicating monetary policy efforts.Conversely, a strong
dollar often reflects confidence in U.S
economic stability but can create headwinds for emerging markets reliant on exports.
