Dollar rise makes currency value reach R$ 4.32

This Friday, the 7th, the dollar is operating on a high. So far, the maximum value the dollar has managed to reach today was R$ 4.3234. It is important to mention that the US labor market scenario contributed to the appreciation of the US currency. In addition, the pressure for further reductions in the basic interest rate in Brazil (Selic) also motivated the appreciation of the dollar.

Economists predict a decrease in the Selic in view of January's inflation, which was very low. The IBGE released today that the IPCA percentage was the lowest in the month since 1994. Want to know more information about the factors that motivated the appreciation of the US currency? Then keep reading our article!

Understand why the dollar is high this Friday

It is important to take into account the data that were released today regarding the US labor market. The labor department of the North American country declared that, in the month of January, 225 thousand jobs were created. This number is much higher than what was predicted by economists. Only 158,000 jobs were expected to be created.

This result is not new. This is because, in previous months, the number of new vacancies was also higher than expected. The positive scenario for the US economy is further reinforced by comparison with the economic situation in the euro zone and China, which is weakened. It is important to consider the impact that the coronavirus outbreak has had on the Chinese stock market.

The Brazilian scenario also motivated the rise of the dollar. Once the January inflation reached 0.21%, Brazil became less attractive for investments from other countries. In view of this situation, economists predict further reductions in the basic interest rate (Selic), which is currently at 4.25% (the lowest level in history).

Final considerations

Having said that, we News Report We hope to have clarified the reasons for the dollar be operating high this Friday. Comment what you have been thinking about the growth in the value of the US currency and if it will harm you in any way. Also, be sure to keep following our website! That's because we will inform you about the main news about the economy of Brazil and other countries around the world.

Source: Value Invest