Dollar retreats with high oil prices and strong local retail supporting the real

At 9:31 am this Thursday, the spot dollar fell 0.21%, to R$4.9632. The dollar for April fell 0.13%, to R$ 4.9680

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Economy
Exchange
3 hours ago
BY Estadao Content

The spot dollar has fallen since the opening of business on a morning when oil prices were high. The strong result of Brazilian retail benefits the real, according to an operator.

Retail sales rose 2.5% in January 2024 compared to December 2023, in the seasonally adjusted series, well exceeding the ceiling of Projections Broadcast estimates, an increase of 1.7%. As for expanded retail – which includes construction material, vehicle and food wholesale activities – sales rose 2.4% in January compared to December, also exceeding the ceiling of projections, an increase of 1.6%.

In contrast, there is the fall of more than 2% in iron ore in Dalian, China, for the third in a row, the increase in Treasury returns and doubts about China’s growth this year.

Investors are still waiting for US indicators, such as the producer inflation index (PPI), retail sales and weekly unemployment benefit claims, all at 9:30 am this Thursday, 14th. The data tends to support fine adjustments about the start of the cycle of interest cuts in the US, expected for June.

In Brazil, the improvement in retail also does not change the chance of further cuts of 50 basis points in the Selic in the next two meetings, including next week.

At 9:31 am this Thursday, the spot dollar fell 0.21%, to R$4.9632. The dollar for April fell 0.13%, to R$4.9680.

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