Higher Democratic victory in US Senate in dollar, vaccination economy in Brazil

The dollar starts rising and the economy trades at R $ 5.30

The dollar is running higher on Thursday (7) amid the prospect of greater stimulus in the US after Democrats received signs from the Senate and federal government to begin vaccinating the Brazilian population before the next 25th. .

At 9:32 am, the US currency was up 0.66%, selling at R $ 5.3395. View more quotes. At the maximum, it peaked at R $ 5.3699.

The dollar gained 0.84% ​​on the previous day to R $ 5.3044 in a volatile session, with the Central Bank offering an extraordinary liquidity to ease volatility due to pressure. In the partial of the week, the US currency gained 2.26%.

The central bank will hold a traditional swap auction to complete 16,000 contracts maturing in May and September 2021.

Miriam Leitao talks about the attack on democracy in the United States after the invasion of the Capitol

The US Congress confirmed Joe Biden’s victory in the election on Thursday (7), and the president-elect will assume office on January 20. United States President Donald Trump said that “there will be an orderly transition on 20 January”. The statement was made after supporters of the president attacked the Capitol, the headquarters of the US Congress. Police said four people died during the attack.

For analysts, the Brazilian currency is once again feeling the effects of lower interest rates, which close the buffer from the exchange rate to events of greater external or internal tensions. With the Celik rate falling at 2% per year and inflation above 3%, the real interest rate in Brazil is negative, discouraging re-purchases by investors looking for profits in “carry trade” operations – including in the past. I was exposed to the real.

The previous day, the Central Bank announced a net offer of up to US $ 500 million in traditional foreign currency exchange contracts and sold the entire lot. BC had already conducted the entire foreign currency exchange proposals during December, to minimize the impact of the billion dollar purchase in the wake of the overhead divestment. And, from late December, Real began to separate from the emerging couple, a poor performance, a scenario that prevailed new exchange intervention by B.C.

Dollar Variation – Photo: Economy G1

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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