The dollar began trading on Tuesday near stability, with investors considering the latest inflation figures from Brazil, reported at 0.33% for January. This inflation rate was influenced by rising gasoline prices and a decrease in electricity costs, according to the Brazilian Institute of Geography and Statistics (IBGE). Meanwhile, the currency recorded gains against various currencies such as the Chilean peso and the South African rand, as well as appreciating against the euro and pound.

As of 9:13 AM, the dollar was valued at R$ 5.1923, reflecting a 0.07% increase, following a 0.61% decline the previous day, where it closed at R$ 5.187, marking the lowest value in nearly two years. This downward trend in the dollar's value has been noted since it reached R$ 5.160 on May 28, 2024, demonstrating a two-year low. The depreciation occurred amidst a global environment characterized by increased risk appetite among investors.

The market reaction is closely tied to a recent warning from Chinese authorities urging local financial institutions to decrease their holdings in U.S. Treasury bonds, which has influenced global currency dynamics. Such movements may impact not only Brazil's trade but also investor sentiment regarding risk, reflecting broader economic trends that could resonate in global markets.