Dollar closes with a fall, with investors considering interest rate cuts by the Fed in July after weaker activity in the US

The dollar fell again against the real, following the correction movement of the American currency against its peers abroad, in the face of weaker US activity data. The composite PMI preview fell from 52.1 in March to 50.9 in April, well below the 52.5 expected by the market.

The sign of a slowdown in the economy has rekindled hope among investors that the Fed can start cutting interest rates a little earlier, in July rather than in September, and make at least two rate cuts this year, which has led to a repricing of interest on Treasuries and exchange rates.

In the domestic environment, the strong number of federal revenue in March (R$ 190.6 billion, an increase of 7.2% in the annual comparison), as expected by the market, helped to make the fiscal target of zero deficit this year more feasible , reducing fiscal risk. Investors also monitored the intense political negotiations in Brasília for the Perse vote, analysis of Lula’s vetoes to the Budget and tax reform regulatory projects, all scheduled for this week.

The spot dollar closed down 0.74%, at R$5.1304, after fluctuating between R$5.1195 and R$5.1895. At 5:05 pm, the future dollar for May fell 0.78%, to R$5.1350.

Outside, the DXY index fell 0.36%, to 105,699 points. The euro rose 0.45% to US$1.0701. And the pound gained 0.79%, at US$ 1.2447.

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