Dollar loses strength with abroad and adjustments, after opening high

The dollar began this Tuesday’s session (17th) on a high, but soon began to fall against the real, driven by the weakening of the DXY index abroad. Relief on the tax issue also prevails.

The future leader of the PT in the Chamber, Deputy Zeca Dirceu (PT-PR), stated that the meeting this Monday (16th) with the Minister of Labor and Employment, Luiz Marinho, did not delve into any specific topic and that further discussion on the readjustment of the minimum wage should only be made on January 30, when the party’s benches will meet.

On Monday, the foreign exchange market was stressed due to the risk of raising the minimum wage this year above R$ 1,320 foreseen in the Budget and of earnings abroad. In addition, the local market reflected the external rise of the dollar against major peers.

The trading volume is higher today, according to operators, with the reopening of markets in New York, after the US holiday on Monday.

On investors’ radar is the participation of ministers Fernando Haddad (Finance) and Marina Silva (Environment) in parallel events and a panel at the World Economic Forum in Davos, which started at 9 am.

Haddad stated that the extreme right will be the opposition force of the Lula government and that is serious. “Despite the fragility of parties, Lula’s support base is strong”, he pondered. The minister pointed out that the sponsors of events in Brasília on January 8th have already been identified and will respond for what they sponsored.

Earlier, the weaker-than-expected IGP-10 contributed to the drop in interest rates in early trades. The IGP-10 rose 0.05% in January, after rising 0.36% in December, well below the floor forecast by Projeções Broadcast (+0.20%).

The IPC-Fipe, which measures inflation in the city of São Paulo, rose 0.67% in the second quadrissemana of January, accelerating in relation to the high of 0.61% verified in the initial preview of this month.

At 9:24 am, the spot dollar fell 0.14%, at R$ 5.1433. The February dollar retreated 0.26%, to R$ 5.1560.