Dollar rises against real inflation after US inflation data and Reuters’ internal uncertainty

By Luana Maria Benedito

Sao Paulo (Reuters) – The domestic environment is still full of political and financial uncertainty, with investors digesting new data on US inflation, with Brazil rising against the truth on Thursday.

At 10:13, the dollar was up 0.49% at 5.2455. Meanwhile, it rose 0.29% to 5.2585.

Those in the United States rose higher than expected in June, suggesting that strong demand could keep inflation high as supply chains continue to tighten.

Despite reading, many investors pointed to Wednesday’s data as a factor in easing the Brazilian currency, after the Labor Department said prices had eased in July.

“In the medium term, there is a clear division among federal directors () on when to reduce the purchase of assets in the financial markets and when to start normalizing monetary policy. The recession of inflation makes more arguments. Analysts at Genial Investmento said in a note.

Meanwhile, in Brazil, investors were cautious amid the cloudy political and financial environment.

Even after the proposed constitutional amendment (PEC) of the printed ballot was overturned by House Plenary – the continued pressure from President Jair Bolsanaro – and the soap opera paying court orders are noteworthy. Mauricio Kavalkande, director of foreign exchange at Orominas, contributes to the volatility in the domestic market.

For Cavalcante, the dollar should be in the trade range of 5.20 to 5.30 until there is relief in the political situation and progress on the government’s reform agenda.

The previous day, the US currency was up 0.47% at 5.2200.