O dollar continues to rise this Monday (6) after opening stable on the spot market. Stonex market analyst, Leonel Mattos, assesses that the demand for the dollar may be reflecting profit-taking, after the dollar’s loss against the real of 0.91% in the week, amid the day’s weaker agenda and after the Chinese services PMI fell in April to 52.5.
A dollar exchange rate is R$5.068 at around 12 pm, representing a drop of 0.03% intraday.
“The services PMI in China slowed slightly, worsening expectations about domestic demand and harming the real,” says Mattos.
Mattos highlights that the adjustment of dollar rise against the real is limited by the appreciation of commodities and the public sector primary surplus of R$1.177 billion in March, which contradicted the market’s median projection of a primary deficit of R$1.70 billion.
The market for exchange You should be cautious because the week brings a complicated economic agenda in Congress, with an impasse still over the tax exemption for municipalities and a vote on presidential vetoes on Thursday.
“Congressmen must evaluate President Lula’s partial veto of the committee’s amendments and, if it is overturned by Congress, the government should have a negative impact of R$5.6 billion on this year’s budget”, reports the analyst.
China influences the dollar
Furthermore, Mattos points to the vote scheduled for this Tuesday in the Senate’s CCJ on the advance of additional credit of R$15.7 billion to the Union, a measure that changes the fiscal framework.
Abroad, iron ore gained 2.63% in Dalian, China, this Monday. Oil rose around 0.70% recently, after falling around 6% last week.
Saudi Aramco, Saudi Arabia’s state-owned oil company, announced that it will raise oil prices in June for customers in northwest Europe, Asia and the Mediterranean, according to Dow Jones Newswires. Furthermore, the possibility that Israel and Hamas will be able to reach a ceasefire agreement is low.
At 10:18 am, the dollar cash rose 0.29%, to R$5.0843. The dollar for June gained 0.17%, at R$5.0960.
With Estadão Content
