Faria Lima makes a big mistake: the real leads global appreciation against the dollar.
Brazilian economy shines while Faria Lima fails in catastrophic predictions.
247 - The real registered the best performance among the main currencies in the world against the dollar this Wednesday (5), appreciating 2,72%. The movement reinforces that the supposed "fears" regarding the generation of formal jobs in Brazil in January and the ministerial reform of the Lula government were, at the very least, exaggerated — and, at most, a strategy of financial terrorism.
Furthermore, the central government achieved a primary surplus of R$ 84,882 billion in January, the largest in the National Treasury's historical series, which began in 1997. The result demonstrates that the financial market's concerns regarding the country's fiscal trajectory were unfounded.
In a shortened session, which began only in the second half of Ash Wednesday, the spot dollar closed the day quoted at R$ 5,7558, down 16 cents from Friday's close.
The weakening of the US dollar was also driven by signs of a slowdown in the US economy, reflecting uncertainty about the impact of government-imposed trade tariffs. Investors began pricing in the possibility of an economic contraction in the country, with traders at the Kalshi forecasting market estimating a 42% probability of a US recession later this year, according to [source missing]. Reuters.
Between October and early January, the dollar had risen almost 10% against a basket of major currencies, driven by the resilience of US economic data and expectations that the Federal Reserve (Fed) would make only one or two interest rate cuts in 2025. However, since then, the US currency has fallen by about 5%, with most of the losses occurring in recent weeks, reflecting signs of a weakening US economy and expectations that the Fed may make up to three interest rate cuts by the end of the year. (With information from...) Reuters).
