Dollar closes below R$3.80 for first time in over a month
The US dollar has dropped around the world after the US Federal Reserve released the minutes of its meeting saying it has to wait and see the effects of China’s slowdown on the US economy before making any decisions about interest.
In a day marked by optimism in foreign markets, the US dollar closed out Thursday (Oct. 8) below R$3.80 (trading at R$3.793), down 2.17%. This has been its lowest rate since September 3 (R$ 3.76). So far this month, the US currency has already gone down 4.34%.
The US dollar has dropped around the world after the US Federal Reserve released the minutes of its meeting saying it has to wait and see the effects of China’s slowdown on the US economy before making any decisions about interest. The US benchmark interest rate is currenty at its lowest level ever, between 0% and 0.25% per annum.
The prospect of the Fed delaying interest increases in the world's largest economy discourages capital flights from emerging countries like Brazil to US Treasury bonds, regarded as the safest investment choice. Higher interest rates in emerging countries help draw financial capital, pushing down dollar rates.
*With information from Agência Lusa.
Translated by Mayra Borges
Fonte: Dollar closes below R$3.80 for first time in over a month
