02/07/2024 – 9:48
The dollar opened Tuesday down against the real, despite the upward trend of the US currency abroad, with the market paying close attention to President Luiz Inácio Lula da Silva’s new interview this morning, in which he said he was concerned about the recent movement of the exchange rate in Brazil.
At 9:36 am, the spot dollar fell 0.33%, to R$5.6352 for sale. On B3, the first-maturity dollar futures contract was down 0.41%, to R$5.6515.
The previous day, the dollar had closed the day at 5.6538 reais for sale, up 1.13%. This is the highest closing price since January 10, 2022, when it ended at 5.6723 reais.
Before the market opened on Tuesday, in an interview with Rádio Sociedade, in Salvador, Lula said he would do “something” about the rise of the dollar against the real, but avoided detailing what measure would be taken “because otherwise I would be warning my opponents”.
Lula said there is currently a speculative attack on the real, adding that he will return to Brasilia on Wednesday to discuss what to do about the rise in the dollar. He also criticized the Central Bank again, saying that the agency cannot be at the service of the financial system and the market.
Lula’s comments regarding the Central Bank are in addition to the president’s statements in recent days, which have been pointed out by market professionals as one of the main reasons why the dollar has soared against the real and the interest rate curve is rising sharply in Brazil. In 2024, the US currency is expected to rise by more than 16%.
Professionals interviewed by Reuters have stated that the accommodation of the dollar against the real depends on the end of Lula’s recurring attacks on the Central Bank and on measures that balance public accounts.
A target of Lula in his recent statements, the president of the Central Bank, Roberto Campos Neto, will also speak this Tuesday at an event held by the European Central Bank (ECB) in Sintra, Portugal.
There is some caution abroad ahead of the release of the Jolts report, which will show the number of job openings available in the United States — a measure of labor demand. The data will be released at 11 am. Federal Reserve Chair Jerome Powell will also be participating in the ECB event.
At 9:33 a.m., the dollar index — which measures the performance of the US currency against a basket of six currencies — was up 0.03%, at 105.870. The US currency was also holding highs against the South African rand and the Argentine peso, but was down against the Chilean peso and the Mexican peso.
In this session, the Central Bank will auction up to 12,000 traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of September 2, 2024.
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