The US dollar fell sharply against the Brazilian real, erasing previous gains as investors processed Federal Reserve Chair Jerome Powells remarks to the US Congress.Powell noted that the US economy is no longer overheating and that the central bank must consider economic risks before deciding on interest rate cuts.On July 9, the commercial dollar dropped 1.12%, closing at R$5.414.
The August futures contract on B3 fell 1.04% to 5,432 points.Despite these local drops, the US Dollar Index (DXY), measuring the dollars strength against six major currencies, rose 0.13% to 105.110 points.The days trading saw reduced liquidity due to So Paulos Constitutionalist Revolution holiday.
Although the stock exchange operated normally, trading volumes were lower than usual.Dollar Drops Over 1% to R$5.41 Following Powells Comments, Bucks Global Trend.
(Photo Internet reproduction)This drop in the dollar continues Brazils recent trend of decreasing risk premiums.However, this movement contrasts with the global market, where the US dollar gained strength following Powells statements.He argued that although US inflation is above the 2% target, it has improved in recent months.Further positive data could support interest rate cuts, though Powell did not specify a timeline, leaving some global markets disappointed.In Brazil, Senate President Rodrigo Pacheco called for a detailed debate on granting financial autonomy to the Central Bank.He responded to concerns from President Lula, suggesting the proposal needs more development with expert and official input.This context highlights Brazils economic dynamics amid global financial shifts.
The falling dollar indicates local confidence despite global uncertainties.Powells comments impact international markets, but local factors like legislative discussions also play a crucial role.Understanding these elements helps investors navigate the complex financial landscape.