The U.S. dollar edged higher against the Brazilian real on Monday, mirroring a global trend of fluctuating currency values as trading volume dips during the year-end period. The dollar closed at R$5.5770,a 0.58% increase, amid typically light trading adn technical adjustments [1]. market analysts anticipate continued volatility in the short term, with investors now focused on the upcoming release of the Federal Open Market committee meeting minutes tomorrow.
The dollar rose against the real on Monday, mirroring movements seen among currency pairs internationally, amid thin trading volumes and typical year-end technical adjustments.
Read more: Dollar Today: Check the daily quote and closing of the commercial dollar
What is the dollar rate today?
The U.S. currency closed the day up 0.58% at R$5.5770. This move comes as global markets experience reduced liquidity heading into the final week of the year.
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As of 5:04 PM local time, the January dollar futures contract – currently the most liquid in Brazil – was up 0.38% on the B3 exchange, trading at R$5.5680.
Commercial Dollar
- Buy: R$ 5.577
- Sell: R$ 5.577
What is happening with the dollar today?
Lower trading volumes are limiting movement in the exchange rate and other domestic assets as the final week of the year begins. The reduced activity often leads to increased volatility.
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“The market has limited liquidity. The environment in these three days will be favorable to volatility due to this,” said Fernando Bergallo, director at FB Capital, adding that agents’ attention is now turning to the minutes from the latest FOMC monetary policy meeting, which will be published tomorrow.
Internationally, the dollar is holding gains against major currencies, but is falling against currencies paired with the real, such as the Mexican peso.
On the domestic economic agenda, the Focus survey released earlier today showed that analysts consulted by the Central Bank have marginally lowered their inflation expectations for this year and next.
Economists reduced the estimate for the IPCA in 2025 to 4.32%, from 4.33% estimated a week ago, marking the seventh consecutive cut to the projection. The expectation for 2026 also fell for the sixth consecutive week, to a median of 4.05%, down from 4.06% the previous week. These downward revisions suggest easing inflationary pressures in the Brazilian economy.
Also this morning, the Fundação Getulio Vargas (FGV) reported that the General Price Index-Market (IGP-M) had a negative variation of 0.01% in December, ending the year with a cumulative decline of 1.05%.
(with Reuters)
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