The dollar retreated this Friday (14), accumulating a fall in the week, in line with the losses recorded by the currency abroad in recent days due to the reduction of fears about the course of interest rates in the United States.
The US currency retreated 0.27%, quoted at R$5.5129. See more quotes. This is the lowest closing level since November 16 of last year (R$ 5.4991).
With this Friday’s result, the dollar lost 2.12% in the week and started to accumulate a fall of 1.11% in the year.
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According to Reuters, the dollar’s recent losses reflect investors’ perception that most of the tougher shift in the US central bank’s monetary policy stance – which is often a supportive factor for the dollar – has already been priced in.
Recently, several Federal Reserve officials argued that the first interest rate hike in the US since the beginning of the pandemic should take place as early as March this year.
The prevailing expectation in the markets is that, after the rise in lending rates in March, the central bank will raise rates twice more this year. But more aggressive bets, that the Fed would make more than three hikes in 2022, lost steam this week after US inflation data was in line with expectations.
Here, the market continues with tax issues on the radar, in particular the pressure from servers for salary readjustments.
“The pressure for spending this election year will be immense. The biggest local risk at the moment is the new wave of the pandemic being used as an argument for a new round of spending”, commented Dan Kawa, investment director and partner at TAG Investimentos.