Follow the dollar quote and understand why the American currency has been falling in Brazil in the last week.
Despite the fall, the dollar registered a slight increase of 0.01% at 08:59 this Thursday (2), quoted at R$ 5.05, bordering stability.
The dollar is the official currency of the United States and a reference for the world economy.
An example of this is that many companies and governments use the dollar in large transactions, such as exports and imports.
In turn, the currency's value is determined by the market according to supply and demand during the day.
The fall of the dollar today is due to the increase in interest rates in the United States, due to inflation in the country.
How is the dollar exchange rate determined?
Several factors determine the dollar quote, for example:
- US Interest Rate: A high interest rate attracts investment and increases the demand for dollars.
- Global Economic Conditions: Global economic health and political stability influence the demand for dollars as a reserve currency.
- Trade imbalances: A U.S. trade deficit could weaken the dollar against other currencies.
- Market Expectations: Investors' expectations about future conditions in the U.S. economy also influence the dollar quote.
- Monetary Policy: The decisions and actions of the US central bank, such as the amount of money in the economy, also affect the quotation of dollar.
What makes the dollar fall or rise?
As we have seen, the dollar changes several times a day, sometimes it rises a lot and sometimes it falls drastically too.
But what makes the dollar fall or rise so much in a single day?
Basically, the dollar fluctuates according to supply and demand. In other words, if many people or companies are buying dollars, the value will automatically rise.
There are already more people wanting to sell than buy, the dollar will fall.
It's not difficult to understand, but it's not that simple either.
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