AR$ 5.32, the dollar reached the highest value in Brazil since February. “The tendency is for the currency to remain at that level until the country’s elections,” according to Insper economics and finance professor Alexandre Chaia.
In an interview with CNN Radio however, he assessed that the dollar “should not have a big upward movement, big shots, as in the past.”
The rise in value takes place, according to the economist, because Brazil “is not a safe haven for investments”: “There is uncertainty about the fiscal adjustment, the elections themselves, and this worsens the country’s image.”
In recent months, there has been a downward movement of the dollar, below 5 reais: “There was an improvement because of the increase in interest rates, the high level brought back speculative investors.”
“The problem is that last month the Fed proposed raising interest rates in the United States and started to attract this investor back”, he added.
Chaia recalls that the rising dollar impacts the price of fuel, commodities, food, and “everything that has an international relationship.”
In this scenario, the professor points out that “the best thing is not to invest in the Stock Exchange, but in fixed income securities, both from the Federal Government and private individuals, such as corporate debentures”.
*With production by Isabel Campos
Source: CNN Brasil
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