Dollar operates on the rise, with increased tensions between China and the US

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On Friday, the currency rose 2.05%, sold at R$5.1476. Dollar Pixabay The dollar operates on a high this Monday (6), with the increase in geopolitical tensions between China and the US due to an alleged spy balloon. At 9:02 am, the US currency rose 0.47%, sold at R$ 5.1720. See more quotes. On Friday, the US currency advanced 2.05%, trading at R$ 5.1476. With the result, it accumulates a high of 0.72% in the week and 1.47% in the month. In the year, however, it still has a loss of 2.47%. 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? Geopolitical tensions between China and the US soared after an alleged spy balloon hit investor sentiment. A US military fighter shot down a suspected Chinese spy balloon on Saturday, a week after it entered US airspace for the first time, setting off a dramatic spy saga that has overshadowed already strained Sino-US relations. China has strongly condemned the military attack on the balloon, which it says was used for meteorological and other scientific purposes. “Without a doubt, the incident is a negative headline for the market,” Yuan Yuwei, hedge fund manager at Water Wisdom Asset Management, told Reuters. “The strong US jobs report also cooled the fever of ‘rate shifts’ perceptions, leading to a higher dollar and a lower yuan.” The latest US jobs report renewed concerns about further interest rate hikes by the Federal Reserve. The Fed raised its interest rate target by 25 percentage points last week, slowing from previous increases of 50 points and even 75 points. In the local scenario, financial market economists raised the inflation estimate for this year from 5.74% to 5.78% – the eighth consecutive increase. For GDP growth in 2023, the financial market lowered its forecast from 0.80% to 0.79%. The BC decided to keep the Selic rate at 13.75% per year and stressed that fiscal uncertainty and the deterioration in market inflation expectations increase the cost for the monetary authority to reach its targets, suggesting high rates for longer. READ ALSO UNDERSTAND: How does a new interest rate hike by the Fed affect Brazil? BACKGROUND: The performance of the real was worse in the Dilma and Bolsonaro governments Initial plugin text

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