The dollar began the month of May soaring against the real, reaching above 5.61 reais this Monday, amid fears about a return to the trade war between the United States and China and internal political tensions.
US President Donald Trump said last week that his hard-fought trade deal with China was now of secondary importance to the coronavirus pandemic, and threatened new tariffs on Beijing as his administration devises retaliatory measures in the face of the coronavirus crisis. health.
In another tense development in the rhetoric between the world's two largest economies, US Secretary of State Mike Pompeo said on Sunday that there is a "significant amount of evidence" that the coronavirus emerged in a Chinese laboratory.
“The intensification of these tensions (between the US and China) occurs in a scenario in which concerns regarding global GDP prevail,” Bradesco said in a daily bulletin. “Thus, the dollar strengthens, while stock markets fall and oil futures contracts decline again.”
At 10:21, the dollar advanced 2.98%, to 5.5998 reais on sale. At the day's high, reached shortly after opening, the dollar touched 5.6152 reais on sale, an increase of 3.25%.
On B3, the main dollar futures contract rose by 2.02%, to 5.6065 reais.
Meanwhile, the domestic political environment remains unfavorable for local assets, Luciano Rostagno, chief strategist at Mizuho bank, told Reuters.
“Bolsonaro continues to support demonstrations against the Federal Supreme Court and Congress, further stressing relations between the powers. This could add to downward pressure on the real.”
On Sunday, after making an appearance lasting almost an hour on the ramp of the Palácio do Planalto to hundreds of people who demonstrated in favor of his government and against the STF and the president of the Chamber, President Jair Bolsonaro said that the Constitution will be respected in the country “at any price” and that the government has the people and the Armed Forces on its side.
The statements came after Federal Supreme Court Minister Alexandre de Moraes suspended the appointment of Alexandre Ramagem to the position of director general of the Federal Police, in a preliminary decision, citing possible compromise by the nominee, who has a friendly relationship with Bolsonaro's family. .
This Monday, the president appointed Rolando Alexandre de Souza, Ramagem's right-hand man, to the position.
According to a survey carried out by Rostagno, “77% of the variation in the fall of the real (in April) came from domestic factors”. “This shows how much this turbulent political environment is affecting the Brazilian currency.”
The dollar traded on the interbank market closed the last session of April, on Thursday, with a jump of 1.55%, to 5.4380 reais on sale, ending the month at a high of 4.69%.
In 2020, amidst a scenario of low interest rates and global economic uncertainty, the dollar has already accumulated an increase of almost 40% against the real.
This Monday, the Central Bank will auction up to 10,000 traditional currency swap contracts maturing in September 2020 and January 2021 for rollover.
Source: agrolink
READ TOO
{module 441}
