Despite US data and disappointment with China, the dollar ends slightly lower

Despite improvements overseas, the trading dollar ended Thursday lower. Throughout the day, it rose in line with the strength of emerging markets, as investors assessed fresh news out of China, which disappointed global markets and sent commodity prices lower, while awaiting fresh economic data from the United States.

An operator interviewed by Reuters noted that while the currency had solid gains abroad, the weak volume and movement of the US currency in Brazil drew attention. According to him, 5.70 reais to the dollar was an important technical resistance.

What is the dollar exchange rate today?

The spot dollar was quoted 0.06% lower at 5.6602 reais. The currency gained 3.87% in October.

At 5:13 p.m., in B3, the first-maturity dollar futures contract fell 0.17% to 5.6685 reais.

By the end of the morning, BC had moved all 14,000 traditional currency swap contracts offered in the auction to the December 2, 2024 maturity date.

Read More: Can the dollar continue to appreciate with higher interest rates in the US?

Trade dollar

• Purchase: R$5,659
• Sale: R$5,660

The tourism dollar

• Purchase: R$5,694
• Sale: R$5,874

The U.S. currency rose against the real on a day-to-day basis, disappointed by new measures announced by China to boost the real estate sector. The Asian country said it will expand the list of housing projects eligible for financing and increase bank loans for these projects by the end of the year. Analysts saw the announcement as merely a complement to the plans presented earlier.

“China’s stimulus package came in below expectations, creating concerns about the impact on emerging economies such as Brazil, and leading investors to seek safe-haven assets such as the dollar, putting pressure on prices,” said Anderson Silva. Variable Income Desk and Partner at GT Capital, comments sent to clients.

In reaction to the Chinese announcement, the spot dollar hit 5.6900 rais (+0.46%) at 9:05 a.m., shortly after the open. However, still in the morning, the currency slowed down and returned to stability.

Abroad, the main bias was to the upside, with prices reacting to the release of positive US numbers. The nation’s retail sales rose 0.4% in September, above the 0.3% economists had forecast, while initial jobless claims fell by 19,000 last week, below a forecast of 260,000 claims.

An adverse external environment and investor concerns about Lula’s government’s fiscal balance prevented the US currency from reaching lower levels. In practice, prices were “locked”. At the low of the day, at 4:43 PM, the spot dollar was at 5.6576 rais (-0.11%).

(With Reuters)