📉Why did the dollar fall to 6.11 reais on 06/01/2025? 📊

The US dollar fell on Monday, in a day marked by volatile trading, due to contradictory information about the intensity of the tariffs planned by US President-elect Donald Trump upon taking office.

Initially, the US currency fell by up to 1.07% against a basket of major currencies, after the Washington Post reported that Trump's advisers were considering imposing tariffs on all countries, but only in sectors considered crucial to national or economic security. This perspective eased concerns about broader and more severe tariff measures.

However, the dollar reduced its losses after Trump denied the report in a post on the social network Truth Social.

“Trump’s statements on Truth Social will continue to drive volatility in the forex market for some time to come, and this morning’s reaction reflects that dynamic,” said Karl Schamotta, chief market strategist at Corpay.

“The market consensus is that Trump’s threats may outweigh his actual actions. Any news that supports this view tends to favor risk assets, putting pressure on the dollar and Treasury yields. However, downside risks remain, with no clear outcome in sight.”

The dollar index (DXY), which measures the greenback against a basket of peers, fell 0.64% to 108.26, while the euro (EURUSD) rose 0.76% to $1.0386. The dollar was on track for its biggest one-day percentage drop since Nov. 27, with the euro headed for its biggest one-day gain since Aug. 2.

The dollar index hit a two-year high of 109.54 last week, marking a five-week winning streak. The resilience of the economy, the potential for higher inflation due to tariffs and the possibility that the Federal Reserve will slow the pace of rate cuts have supported the greenback.

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