The US currency fell 7 times in a row before closing Friday higher, affected by interest rates in the US and Brazil
The real was the second currency that appreciated the most in the world against the dollar between September 1st and 20th. The appreciation was 3.26% in the period, according to data collected by economist Alex Agostini, from the agency Austin Rating.
The only country above Brazil is Thailand, with an appreciation of 3.31%. Malaysia and Afghanistan are in 3rd and 4th places, respectively.
Austin used the Ptax (official Central Bank rate) as the basis for the survey. Read the ranking in the infographic below:
The US currency closed up 1.78% on Friday (20.Sep.2024). Despite this, it accumulated a drop of 0.83% in the week.
The dollar was in a cycle of 7 consecutive declines before the expansion on Friday. Read the price history:
The consecutive falls and the one-week retraction can be explained by the movement of interest rates, especially in the United States. Federal Reserve (US central bank) cut the base rate for the first time in 4 years. The reduction was 0.50 percentage points and the rate is in the range of 4.75% to 5.00% per year.
Lower interest rates devalue treasuries Americans. The lower yield on government bonds provides relief to the dollar exchange rate.
In Brazil, the movement was opposite. The Central Bank chose to raise the Selic rate by 0.25 percentage points after 2 years. Investments with income linked to the basic rate appreciated and investors moved away from risk.
The change is reflected in the Stock Exchanges. During the week, only B3 (São Paulo Stock Exchange) and the FTSE 100 (United Kingdom) closed lower.
The Selic is the basic interest rate of the Brazilian economy. It directly influences the rates that will be charged on loans, financing and investments. In the financial market, it impacts the return on investments.
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