By The Rio Times | Created at 2025-01-17 22:17:43 | Updated at 2025-01-31 10:05:09
1 week ago
The Brazilian real weakened against the US dollar on Friday. The greenback closed at R$6.0656, up 0.20% for the day. This marked the second consecutive daily gain for the dollar.
However, it still ended the week 0.60% lower against the real. The currency market reacted to statements from Brazil’s Finance Minister Fernando Haddad. He stressed the need to create conditions for lower interest rates.
Haddad expressed concern about the current trajectory of public debt. He believes monetary policy will have a greater impact on inflation than many expect. Haddad also shared his views on the dollar‘s value.
He considers any exchange rate above R$5.70 as overvalued for Brazil’s economic fundamentals. The minister stated he would not buy dollars above this level. These comments influenced market sentiment and currency movements.
Dollar Rises to R$6.06 Amid Haddad’s Remarks and Trump’s Inauguration. (Photo Internet reproduction)Globally, investors are preparing for Donald Trump’s presidential inauguration on Monday. Trump’s expected protectionist policies could strengthen the dollar worldwide.
This may put pressure on emerging market currencies like the Brazilian real. The dollar index, which measures the greenback against major currencies, rose 0.40% to 109.354 points.
The currency market’s behavior is aligned with global trends. Investors are weighing the potential impact of Trump’s presidency on international trade. His proposed tariffs on various countries, including Brazil, could reshape global economic dynamics.
These factors contributed to the dollar’s strength in the final trading session of the week. Despite the day’s gains, the weekly performance of the dollar against the real remained negative.
In short, this reflects the complex interplay of domestic and international factors shaping Brazil’s currency market. As the new US administration takes office, market participants will closely monitor its policies and their effects on global currency trends.
