He Brazilian real price falls against the dollar After two consecutive days registering profits.
He USD/BRL has uploaded this Thursday to a daily maximum of 5,8346 from a minimum of the day of 5,7975.
The US dollar is quoted at the time of writing in front of the Brazilian Real about 5,8096, winning 0.21% in what we have been working on.
Brazil does not respond for the time to the US with reciprocal tariffs
- Fernando Haddad, Minister of Finance of Brazilsaid Wednesday that the Government of Lula da Silva He does not plan to announce reprisals against tariffs imposed by the United States on steel and aluminum exports.
- Brazil is the second steel exporter To the USA after Canada, and according to Haddad, they are accustomed to negotiating in more unfavorable conditions than these.
- Brazil will publish tomorrow the January retail sales data, waiting for a 0.3% drop after the 0.1% decrease in December. The balance of the nominal and January and the budget surplus will also be known.
- The United States has published its inflation data in production prices todaywhich increased by 3.2% per year in February, below the 3.3% expected. The underlying production price index, which excludes food and energy, rose 3.4% in the same period, below the expected 3.5%.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
