The dollar closed higher this Thursday (25), extending gains the day before, after the US Gross Domestic Product (GDP) in the first quarter came in below market consensus. Core PCE inflation came in above expectations, which should keep economists pessimistic about the possibility of the Federal Reserve (Fed) promoting any interest rate cuts in the short term.
It is worth remembering that the complete PCE report, which is the personal expenses index, comes out tomorrow (26), but the previous quarterly data today showed an acceleration in prices.
The Central Bank held an auction of up to 12 thousand traditional currency swap contracts in this session for the purpose of rolling over the maturity date of July 1, 2024.
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What is the dollar exchange rate today?
The spot dollar operates with an increase of 0.28%, at R$5.161 when buying and R$5.162 when selling. At 5:40 pm (Brasília time), the first-month dollar futures contract rose 0.11%, to 5,162 points.
Commercial dollar
Sale: R$5,162
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Purchase: R$5,161
Maximum: R$ 5,193
Minimum: R$ 5,111
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Tourism dollar
Sale: R$5,377
Purchase: R$5,197
Despite losing steam in the afternoon, the currency closed higher for the second consecutive session, driven by worse-than-expected US inflation data, which reinforced bets that the Fed will promote fewer interest cuts this year.
Traders began the session waiting for the release of the first preview of the US Gross Domestic Product for the first quarter and the PCE index that accompanies the GDP report, looking for clues about the next steps of the American Central Bank.
When the numbers came out, at 9:30 am (Brasília time), Treasury yields plummeted at first, with the information that GDP grew at an annualized rate of 1.6% in the first quarter — below 2.4% of growth projected by economists consulted by Reuters. This meant that, in Brazil, the spot dollar also plummeted, reaching a low of R$ 5.1123 (-0.72%) at 9:30 am.
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In the next minute, however, yields jumped into positive territory and began to reach new highs in the session, which made the dollar also gain strength against several currencies, including the real. Behind the turnaround were bad inflation numbers: core PCE rose 3.7% in the first quarter, above expectations of a 3.4% rise.
(Reuters)
