THE dollar in sight was rehearsing high this Monday morning and surpassed 5.70 reais in the maximum so far, on a Monday that should be marked by an even smaller volume of business as the end of the year approaches.
At 9:42 (from Brasilia), the dollar in cash advanced 0.34%, to 5.6824 reais on sale. The quotation has already varied between 5,7073 reais (+0.78%) and 5.669 reais (+0.10%).
On B3, the dollar futures contract of first maturity rose 0.29%, to 5.6885 reais.
Part of the movement here reflected the strength of the dollar abroad. The US currency gained 0.14% against a basket of rich countries’ currencies, while it appreciated 0.4% against a set of emerging pairs.
On a day of weak liquidity, the fall in assets correlated to the prices of currencies such as the real has more weight in price formation. An iron ore contract traded in China, for example, came to fall 3% this Monday.
The input is one of the main products in the export basket of the Brazil and it directly impacts the so-called terms of trade –relation between export and import prices–, a variable that is included in equilibrium exchange rate calculations.
Others commodities they were also falling, like oil and copper – this considered a thermometer of global economic prospects.
Fears about the Ômicron variant of the coronavirus continued to rank high on the list of concerns of global investors, whose fears also include risks of inflation higher and consequent more accelerated tightening of monetary policies.
In Brazil, the last week of the year reserves fiscal data, which at the margin should come out better than expected.
“The fiscal numbers for the year should come up (better) than those projected at the beginning of the year, but at the same time with a very bad fiscal perspective for the future”, pondered Jason Vieira, chief economist and partner at Infinity Asset, warning that there is still a risk of volatility hitting the markets in these last days of the year.
THE real, in fact, remains the most volatile relevant emerging currency outside the Turkish lira, which is involved in a deep crisis of confidence.
(Updated at 9:57 am)
Source From: Moneytimes
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