The dollar closed on a firm rise against the real, following the currency’s advance against its peers abroad and Treasury interest rates, after new activity data from the American economy left even more doubts in the air about the Fed’s next steps.
The industrial activity index measured by the ISM jumped from 47.8 in February to 50.3 in March, well above the 48.5 expected by economists. Furthermore, the indicator entered expansion territory (above 50.0) for the first time since September 2022. The data ended up drowning out the good news about inflation measured by the PCE, released on Friday, which came within market expectations .
The market also reflected statements by Fed President Jerome Powell that the American Central Bank does not consider it appropriate to cut interest rates until there is confidence that inflation is on a sustained downward path, which generated uncertainty among investors whether the easing monetary policy will begin in June.
The lack of domestic news this Monday after the long holiday helped the exchange rate continue to be linked to the movement of the currency abroad.
The spot dollar closed up 0.87%, at R$5.0591, after fluctuating between R$5.0098 and R$5.0705. At 5:02 pm, the dollar futures for May advanced 0.74%, to R$5.0745.
Abroad, the DXY index rose 0.41%, to 104,977 points. The euro fell 0.48% to US$1.0742. And the pound lost 0.62% to US$1.2546.
| Date | Purchase | Sale | Variation | Variation |
| 01/4/2024 | 5.0585 | 5.0591 | 0.87% | 0.0438 |
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