Dollar starts to fall against Real; caution by acts of September 7 remains

Dollar starts to fall against Real;  caution by acts of September 7 remains

Dollar has slight increase against real with holidays in the US and September 7th on the radar

By Luana Maria Benedito

SAO PAULO (Reuters) – The dollar began to fall slightly against the real on Monday, in a session of low liquidity due to a public holiday in the United States, but investors remained fearful on the eve of demonstrations scheduled for September 7, in Tuesday in Brazil.

At 11:45, the dollar retreated 0.27%, to 5.1701 reais on sale, after having presented an earlier rise. The North American currency rose 0.56% at the maximum of the session, at 5.2130 reais.

The most liquid future dollar fell 0.45% to 5.1925 reais.

The cooling of the dollar in the Brazilian market was in line with the modest losses of the US currency against emerging currency pairs, such as the South African rand, the Mexican peso and the Turkish lira.

Several analysts drew attention to the Labor Day holiday in the United States, which keeps US markets closed on Monday, which should keep trading volumes low during the day.

But the approaching Independence Day in Brazil kept market participants nervous. President Jair Bolsonaro is betting on an overwhelming demonstration on Tuesday to regain political strength.

Over the weekend, he defended the participation of military police officers in the acts scheduled for the national holiday, and guaranteed that he will not retreat from his positions, amid strong tension between the Executive and Judiciary Powers.

The Supreme Court (STF) has taken a series of measures to counteract any excesses that may occur in the demonstrations, concerned about threats made by Bolsonaro and his allies, according to court sources with whom Reuters spoke.

“This week, (…) the scenario will be dominated by the manifestations of Independence Day, which turned into a public dispute between the STF and the President of the Republic”, wrote analysts from Genial Investimentos in a note.

“The dispute could become the embryo of an institutional crisis whose outcome is difficult to predict. Our assessment is that, in the end, the conflict will have a peaceful solution, but the performance of the economy will not be unscathed.”

In the last trading session, on Friday, the spot dollar had a positive variation of 0.02%, at 5.1839 reais on sale.

tagreuters.com2021binary_LYNXMPEH850FB-BASEIMAGE

See too

+ Mother finds 2-year-old son dead with a note on his side when he gets home

+ US agency warns: never wash raw chicken meat

+ Fátima Bernardes’s daughter exudes beauty in a photo in a sunken bikini

+ “Gourmet” charcoal that doesn’t get your hands dirty becomes a meme on social media; listen

+ Passenger attacks and pulls out two stewardess teeth

+ Girl gets snake bite on her face while visiting a zoo in Russia

+ Porn actor found dead in highway ditch

+ Learn how to make Ivete Sangalo’s delicious feijoada recipe

+ Geisy complains about social media censorship: “Instagram is chasing me”

+ Aloe gel in the drink: see the benefits

+ Lemon-squeezing trick becomes a craze on social media

+ Yasmin Brunet breaks the silence
+ Shark is captured in MA with the remains of youngsters missing in the stomach