US dollar rises against Brazilian real

The US dollar opened sharply higher against the Brazilian real on Monday. Around 9:30 AM, the spot dollar advanced 0.67% to R$ 5.1593. The October dollar futures contract rose 0.58% to R$ 5.1785. Meanwhile, the commercial euro gained 0.17% to trade at R$ 5.9531.

The advance tracked broader strength in the greenback as global risk aversion increased. Crude oil surged to $108 per barrel, and technology company chief executive officers called for caution regarding artificial intelligence development. The DXY index, which measures the currency against a basket of six peers, gained 0.41% to 99.53 points. Against other emerging currencies, the dollar appreciated 0.52% against the Mexican peso and 0.50% against the South African rand.

Local factors also weighed on the market. Investors monitored tensions involving the Federal Supreme Court alongside the presidential race between Luiz Inácio Lula da Silva and Flávio Bolsonaro ahead of the October elections.