Why did the dollar fall so much? Understand what made the dollar fall this way and the impacts it has on your life.
We can say that the fall of the dollar in this first semester surprised many people, being the biggest since 2016. With the strengthening of the real, the market started the year in a better mood.
The dollar fell sharply, going from a value of R$ 5.23 to R$ 4.77, reaching the lowest level for the exchange since 2022.
The experts' expectation was that the dollar would be at R$ 5.40, or close to it. This appreciation of the Real brings significant impacts on the economy, understand everything that is happening here.
Why did the dollar fall so much? Let's understand what is happening in our economy, as well as the impacts of this on our lives.
What valued the Real?
In the first place, we need to understand what brought this appreciation to our currency, that is, what contributed to the strengthening of the Real.
The actions of our country's economic team managed to mitigate a little the instability experienced between the end of 2022 and the beginning of 2023.
Placing Brazil as a destination for foreign capital, further strengthening our economy. Our foreign exchange reserves are robust, and political stability, which reassures the market.
Bringing Brazil to prominence among emerging markets, all of this brought appreciation of the Real against the dollar.
Added to this, the current interest rate and the Selic parked at 13.75% per year, with the drop in inflation. Anyway, a series of factors contributed a lot with our currency.
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All this attracts many investors, who believe that with the highest real interest rate they can invest with low risk.
This transaction occurs as follows, you take your money from the country where you are, and take it to where the interest rate is higher. Getting higher interest for your money, this is very attractive for investors.
With the strong entry of the dollar into the market, the real was strengthened, managing to reach the current level, that is, below R1TP4Q 4.80.
focus on interest
At first, what would make the dollar return to the level of R$ 5? This is a very important question for anyone who has an eye on the future of our country.
Why did the dollar fall so much? If we ask that, we should think about what would make the value rise again. Answering this is quite simple, we need to look at interest rates.
For the dollar to remain at the level it is at, we need two things, the first of which is to keep interest rates high around here.
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If interest remains high here, and US interest rates at the level they are, everything remains. However, if interest rates rise there and fall here, investors take the money there.
If there is an exaggerated cut in interest rates, we may witness a devaluation of the Real. However, so far we have not seen anything in this direction.
With the value of the dollar at the level it is, it is time to buy the dollar, after all, the tendency is for it to rise again. Favoring a sale in the future.
However, there is a variation that always occurs with the US currency, although there is still room for a greater drop. That way, make contributions little by little, don't invest everything at once.
This is the time for US currency purchases and international travel. Enjoy this moment in the best way.
