Dollar opens lower on Friday

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On the eve, the US currency advanced 0.20% this Thursday, quoted at R$ 5.2029. Dollar banknotes John Guccione/Pexels The dollar operates in decline this Friday (3). At 9 am, the US currency fell 0.18%, quoted at R$ 5.1933. See more quotes. The previous day, the dollar closed up 0.20%, quoted at R$5.2029. With the result, the coin accumulates a high of 0.08% in the week. In the year, the indentation is 1.42%. READ ALSO: UNDERSTAND: What makes the dollar rise or fall in relation to the real COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why is tourism more expensive? DOLLAR: When is the best time to buy the currency? MONEY OR CARD? What’s the best way to take dollars on trips? What is messing with the markets? The market continues to monitor a strengthening of the dollar with uncertainties about the course of monetary policy in developed countries, mainly in the United States, where economic activity continues to accelerate. With this acceleration, the Federal Reserve (Fed, the American central bank) has more difficulty controlling the advance of inflation. The remedy to contain rising prices, then, is to keep interest rates at high levels. Today, American interest rates are between 4.5% and 4.75% per year. Higher interest rates imply a higher yield for the country’s government bonds, considered the safest in the world. Thus, investors flock to these investments, which favors the dollar against the currencies of other countries, especially emerging ones, such as Brazil. But analysts in a Reuters poll still predict weakness for the US currency within a year, even with an improving global outlook and expectations that the Federal Reserve will stop raising interest rates well ahead of the European Central Bank. The Dollar is therefore expected to trade below current levels against all major currencies over the next 12 months. While analysts have been predicting a weaker 12-month dollar for more than five years, their predictions didn’t come true until 2020, when the currency weakened by more than 6.5%. READ MORE Services sustain a rise in GDP, with tourism pulling recovery from activities ruined by the pandemic High interest rates have already reduced GDP in the 4th quarter and complicate 2023, say economists MÍRIAM LEITÃO: ‘The Bolsonaro government handed over to the Lula government, already slowing down’ Initial plugin text

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