Dollar retreats as oil falls and investors await summit

The dollar opened Monday (21) down 0.59%, quoted at R$ 5.1136, while the Ibovespa rose 0.16% to 185,522 points. The depreciation of the U.S. currency is linked to the drop in oil prices and investors' focus on the meeting between Presidents Donald Trump and Xi Jinping.

Dollar decline follows oil pullback

Brent crude, the international benchmark, fell 3.07% to US$ 100.68, and West Texas Intermediate (WTI) slid 3.84% to US$ 96.45. The commodity price dip, spurred by China’s request to Iran to curb Houthi rebel attacks on Saudi infrastructure, eased global‑supply concerns and brought relief to the market.

Anticipation of economic data in Brazil

Investors await the release of the IPCA‑15, a preview of the official inflation rate, scheduled for Friday. The agenda also includes the minutes of the latest Monetary Policy Committee (Copom) meeting and new activity indicators from the United States and Europe, which could influence the dollar's trajectory.

Trump‑Xi summit as a focal point

The summit between Donald Trump and Xi Jinping, set for Thursday, is being closely watched for its potential to extend the commercial truce struck last year. Issues on Taiwan and artificial intelligence may also be discussed, affecting market risk perceptions.

Repercussions in international markets

In the United States, major equity indices were higher: Dow Jones +0.28%, S&P 500 +0.65% and Nasdaq +1.22%. In Europe, the DAX rose 0.94%, the CAC‑40 advanced 0.72% and the FTSE 100 gained 0.70%. In Asia, the Shanghai index (SSEC) climbed 1.0% and Hong Kong's Hang Seng was up 1.2%, indicating optimism about the continuation of the commercial truce.

Impact for Brazilian investors

The combination of a cheaper dollar, falling oil and expectations of global political decisions creates a volatile environment that can affect both foreign‑asset pricing and the attractiveness of fixed‑income investments linked to the exchange rate. Monitoring upcoming economic indicators and the outcomes of the Trump‑Xi meeting will be essential for assessing possible portfolio adjustments.

Information from G1.