Dollar falls again and goes below R$ 4.90

The dollar had fallen in the first trades this Wednesday (23), engaging its sixth straight day of devaluation and going below the R$ 4.90 support as investors continued to see an attractive domestic environment for investments.

At 9:08 am (GMT), the spot dollar retreated 0.33%, to R$ 4.8990 on sale.

On B3, at 9:08 am (GMT), the dollar futures contract with the first maturity fell 0.26%, to R$ 4.9120.

The dollar traded on the interbank market closed the last session down 0.57%, at R$4.9153, the lowest closing level since June 24, 2021 (4.9062).

In this trading session, the Central Bank will auction up to 7,550 traditional foreign exchange swap contracts to roll over the maturity date of May 2, 2022.

This Tuesday (22), the commercial dollar closed down by 0.60%, at R$ 4.9140, the lowest value of the American currency since June 24 of last year, when the price of the day was R$ 4. .9050.

The day before, the dollar had already fallen 1.45%, closing the session at R$ 4.9440 on sale. Until then, the lowest value since June 29 of last year.

Excessively undervalued stocks on the stock exchange, the possibility of gains in the commodities sector due to the threat of oil shortages caused by the war in Ukraine, in addition to high domestic interest rates, create a combination that favors the inflow of dollars into the country. The result is a fall in the exchange rate.

This year, the real has the greatest appreciation against the American currency, when compared to other currencies of emerging countries. The spot return of the Brazilian currency is at almost 13% in the accumulated of 2022, according to data compiled by Bloomberg.

Marco Caruso, chief economist at Banco Original, stresses that the trigger for the recent fall in the dollar was the new shock in commodity prices due to the Russian invasion of Ukraine. He points out, however, that this “movement was exacerbated by the Central Bank’s decision to link the rise in interest rates to the rise in oil prices”, he commented.

The appreciation of commodities produced in Brazil is already an important factor in the fall of the dollar, as these goods are traded in dollars and, naturally, represent a gateway to foreign currency.

“And if you still have Copom [Comitê de Política Monetária do Banco Central] saying it will raise interest rates if oil goes up, that’s one more force [para a queda do dólar]as higher interest rates tend to attract more foreign capital to our fixed income”, commented Caruso.

with Reuters