This Friday, the United States dollar achieved a significant uptick against the Brazilian real, recording its strongest weekly appreciation in six months.Driven by US consumer inflation data, rise suggests tempered expectations for Fed monetary easing this semester.The dollar rose by 0.60% to 5.1213 reais, though it had earlier surged over 1% to reach 5.1496 reais.By the days close, it had settled at its highest position since October 9, 2023, when it stood at 5.1315 reais.This weeks performance marks the third consecutive weekly gain for the dollar, totaling a 1.11% increaseits most substantial since January.Dollar Ends Above R$5.12, Secures Strong Weekly Gain Amid United States Inflation Data.
(Photo Internet reproduction)Recent data disclosed that the United States consumer price index (CPI) increased by 0.4% last month, mirroring the rise in February.Over the past year through March, the CPI grew by 3.5%, slightly above the 3.4% annual increase forecasted by economists.US PPI rises for March below expectations; market skepticism persists regarding imminent Fed rate cut this semester.CME Groups FedWatch tool shows market odds for June rate cut drop significantly to 25.8% from 53.2% last week.Further comments from Federal Reserve officials underscored the sentiment.Kansas City Fed President Jeff Schmid: With inflation above 2% target and strong job market, its not time for rate cuts.Chicago and Boston Fed Presidents offer mixed outlook on rates, citing ongoing high inflation concerns.The rising dollar benefits from higher United States market yields, making it more attractive to international investors.Itas Mario Mesquita: External factors may bolster dollar, delaying United States rate cuts, balanced by Brazils Selic rate.Observers note dollars deviation from 200-day moving average near 4.93 reais, signaling robust trend and challenging outlook for real.