The dollar accelerated its fall to more than 2% against the real this Friday, approaching 5 reais again and heading towards closing the third consecutive week of losses amid an optimistic outlook, with investors reacting positively to better data from the than expected on employment in the United States.
At 10:10, the dollar fell 2.47%, to 5.0047 reais on sale. At the low of the day, the North American currency was 5.0010 reais.
The most liquid dollar futures fell 2.29%, to 5.008 reais.
Friday marked the end of a positive week for risky assets, which have been buoyed by optimism over a resumption of activity in major economies due to the gradual easing of restrictions. So far, the dollar has accumulated a drop of 5.8% against the real since last Friday's close.
Abroad, other risky currencies — such as the Mexican peso, South African rand and Australian dollar — were operating higher against the dollar in this trading session.
“Investors follow the release of macroeconomic indicators, but remain focused on the reopening of economic activities in several countries,” wrote Bradesco analysts.
This Friday, the US government's employment report showed that the unemployment rate in the world's largest economy had an unexpected drop in May, going from 14.7% in April to 13.3%, contradicting expectations of a rise for 19 .8% in Reuters poll.
Market participants said the reading was much better than expected, a sign that the worst of the coronavirus economic crisis may be over.
“In addition, the announcement of the expansion of the monetary stimulus program made by the ECB yesterday also brings additional impetus to business”, added Bradesco analysts.
The European Central Bank approved a larger-than-expected expansion of its stimulus program on Thursday to boost its economies, boosting emergency asset purchases by 600 billion euros to 1.35 trillion euros.
Meanwhile, in Brazil, attention continued to be on political developments, with expectations of possible social unrest over the weekend.
President Jair Bolsonaro once again called protesters from pro-democracy groups opposed to his government “marginals” and “terrorists” this Friday, and asked the country’s security forces to act against demonstrations scheduled for Sunday if the groups “exceed” the limits.
Despite having already lost strength since reaching record highs close to six reais in mid-May, the dollar still accumulates an increase of around 25% against the real in 2020, hampered by a scenario of political uncertainty, low interest rates and strong impacts economic consequences caused by the coronavirus pandemic.
In the last session, the North American spot currency rose by 0.89%, to 5.1315 reais on sale.
This Friday, the Central Bank will offer up to 12 thousand traditional currency swap contracts for rollover, with maturities divided between September 2020 and February 2021.
Source: Notícias Agrícolas
READ TOO:
{module 441}
{module 442}
