He Real Brazilian advances for the second consecutive day After climbing yesterday to maximum of the week in 5,9148 and then close the day with losses of 0.34%.
This Thursday, the USD/BRL has moved between a daily minimum of 5,8537 and a maximum of the day of 5,8852.
The American dollar price against Real Brazilian in the American session is 5,8627, losing 0.07% in the day.
US mixed data favor the Brazilian real for Holy Week
- The USD/BRL operators are still pending of the tariff policy of the United States and the turns of Donald Trump with the main partner of Brazil, China. The Chinese position of ignoring the US government calms the markets before Easter.
- Brazil has revealed this Thursday that In the first three months of 2025 the small business opening record was broken in its territory. The number of openings rose to 1.4 million.
- Brazil will publish next week its inflation fact of the middle of April, after previously growing 0.64%.
- He Manufacturing index of the Fed of Philadelphia showed a minimum drop of two years in Aprilcollapsing to -26.4, below the 2 points expected by the market. On the other hand, the beginnings of housing fell 11.4% in March after rising 9.8% in February. In total, 1,324,000 homes were initiated, below 1,420,000 estimated.
- The positive data of the United States was in the job part, since the weekly requests for US unemployment subsidy descended to 215,000 last week from the previous 224,000, improving the 225,000 planned.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
