The Brazilian real showed strength against the US dollar on October 14, 2024, with a 0.59% decrease in the dollar’s value, closing at R$5.582 for both buying and selling. This occurred despite the dollar’s rise in other emerging markets globally.
Initially, investors favored the US currency due to expectations of a smaller interest rate cut by the Federal Reserve and China’s vague economic promises. However, news of potential government spending cuts led to a turnaround in the afternoon.
Market concerns about Brazil’s fiscal situation were eased with the announcement of these measures. Jefferson Rugik, director of Correparti Corretora, highlighted the market’s reaction to the news.
Dollar Weakens Against Real Despite Global Trends
Despite disappointing news about China’s stimulus package and the US dollar index’s rise, the real’s performance stood out among emerging market currencies. It showcased the impact of domestic fiscal news on currency movements, with the dollar reaching its lowest point at R$5.5654 before partially recovering by the end of the day.