Dollar drops against real with improvement in global risk appetite

The dollar opened lower against the real this Monday (6), following an improvement in global risk appetite after the reduction of health restrictions in China, at the beginning of the week marked by the monetary policy meeting of the ECB (European Central Bank) and by US inflation data.

At 9:04 am (GMT), the spot dollar retreated 0.39%, to R$ 4.7592 on sale.

On B3, at 9:04 am (GMT), the first-maturity dollar futures contract dropped 0.38% to R$4.7945.

The spot dollar closed the last session, on Friday (3), down 0.18%, at R$ 4.7776 on sale

Last Friday (3) the financial market reacted to the release of the report on job creation in the United States, which showed growth in job creation, increasing fears about the escalation of global inflation.

The benchmark index of the Brazilian Stock Exchange fell 1.15% in the session and consolidated a weekly low of 0.75%, the first drop after three consecutive weeks of gains.

The trading dollar rose 0.82% last week. In trading, the American currency closed with a slight daily drop of 0.16%, quoted at R$ 4.7780 on sale.

The global inflationary pressure is the result of the resumption of economic activities while the supply of goods and raw materials is still hampered by interruptions in supply caused by the pandemic. Situation that worsened with the war in Ukraine.

Robust data on job openings can be interpreted as signs that the policy of raising US interest rates will be maintained, favoring investments in the US Treasury.

In addition to strengthening the dollar against other currencies, the rise in interest rates takes away the appetite of investors for riskier applications, such as the stock markets.

After new data showed the strength of the labor market, the market began to see more evidence that the Fed (Federal Reserve, the American central bank) will need to keep its monetary tightening going to try to stop the highest inflation in the country in 40 years.

with Reuters