The dollar in 2024 is rising in Brazil and continues to recover its depreciated value over the past two years. In June, the American currency surpassed the mark of $5.50.
In 2023, the dollar recorded a decline of 8%. The current appreciation of the currency indicates a recovery of all the depreciation against the real last year. Experts point out that this increase is due to a series of factors, including the situation of interest rates in the United States, external conflicts around the world, and the investor’s need to protect their money.
The dollar is seen as the main protective currency for investors. In times of turmoil or trade uncertainty, they withdraw their investments from emerging countries and turn to the North American currency as a “protective measure,” raising its price and decreasing the value of other currencies.
Another determining factor in the value of the currency is the definition of interest rates in the United States. Currently, it is set between 5.25% and 5.50%. There was an expectation that the rate would fall, which has not been confirmed. A new meeting in the coming months could change the economic scenario of the country.
The rise of the dollar causes the depreciation of the real in the global market. With investors leaving the country, the fall of the national currency makes Brazil lose strength compared to other countries.
Experts point out that, despite the unstable market, there is a possibility of improvement by the end of the year.
Source: O Valor