Feb 19 • 12:00 UTC 🇧🇷 Brazil G1 (PT)

Dollar opens higher with focus on GDP preview and tensions between the USA and Iran

The dollar opened higher in Brazil due to anticipation of GDP indicators and escalating tensions between the U.S. and Iran.

On Thursday, the U.S. dollar began trading higher in Brazil, gaining 0.11% and reaching R$ 5.2458. This increase in the dollar's value comes as investors await key economic indicators from the United States, such as weekly jobless claims and the report on existing home sales, which provide insights into the state of the U.S. economy. As the trading day progresses, the main Brazilian stock index, Ibovespa, is also set to open, drawing attention to the overall financial sentiment.

The geopolitical landscape is adding further volatility to markets, particularly the ongoing tensions between the U.S. and Iran. White House spokesperson Karoline Leavitt indicated that the U.S. government has several arguments to justify a military strike against Iran if necessary. While diplomatic negotiations are taking place in Switzerland, facilitated by Oman, both nations have engaged in social media threats that heighten the risks of conflict. This situation has contributed to rising oil prices, which surged over 4% due to fears of disrupted supply.

In Brazil, the focus is also on the release of the IBC-Br index for December, a key indicator often viewed as a preview of the country's GDP. With such economic data on the horizon, the Brazilian market is keenly observing the implications these developments may hold for both local and international economic conditions as investors navigate through these turbulent times.

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