The dollar falls again and closes at the lowest since October 26

The dollar experienced a new day of decline and closed on Wednesday 9th at its lowest value since October 26 last year, when it stood at R $ 3.65. The devaluation mainly reflects the weakness of the US currency abroad, but was also influenced by positive expectations, especially from the domestic investor, with the advance of a more reform pension boom under Jair Bolsonaro's government. As a result, the real was the currency of the emerging countries that fell the most against the dollar, considering a basket of 24 major world currencies. The US dollar closed the day at R $ 3.66833, down 0.92%.

The US dollar fell all day and fell below the R $ 3.70 level in the morning. This was the first time the currency had closed below this level since November 1, 2018. It was only in 2019 that the US currency fell by 5%. Traders observed inflows of foreign capital, which helped lift the pressure on the exchange rate. The decline in country risk, as measured by the Credit Default Swap (CDS), which declined to 177 points on Wednesday, was another factor contributing to the positive performance of the real. The prices of the CDS were traded Wednesday at the lowest level since last April.

"The dollar was weak Wednesday around the world," says Fabiano Rios, head of Absolut Investimentos. The weakness of the US dollar abroad, coupled with favorable local news, has helped to fuel Brazil 's appetite for risky badets, particularly the local investor, has he stressed. However, among foreigners, the climate is a little more cautious with Brazil. JPMorgan reiterated Wednesday the "above-average" performance recommendation for the Brazilian stock market, but cautioned against the "risk of complacency" with the country, stating that it is necessary to keep an eye on the The Bank says Bolsonaro is on the right track, with a liberal agenda of reforms, privatizations and environmental improvements to do business in the country. Brazil On Tuesday evening, Economy Minister Paulo Guedes said the goal was to send Congress a more comprehensive pension reform, with greater tax savings.

At the end of the day, close to the end of the day, the publication of the minutes of the Federal Reserve (Fed, the US central bank) ensured that the dollar in view accelerated the pace of the decline somewhat. document shows that leaders intend to be "patients" in the process of raising interest rates in the world's largest economy. For badysts at Continuum Economics, the minutes showed Fed officials ready to pause, as there is no inflationary pressure in the United States. This move helped to weaken the dollar in the global economy. Expectations regarding the settlement of trade disputes between China and the United States also contributed to the fall of the dollar abroad and the search for risks for investors.