THE dollar rose 0.90%, quoted at R$ 4.987, around 9:20 am this Monday (2), maintaining an uptrend that started in April. The market operates cautiously while waiting for decisions on interest rates in Brazil and the United States, which will take place next Wednesday (4).
Investors expect that the Federal Reserve the US central bank, adopt a tougher tone in the fight against inflation record in the country and raise interest rates by 0.5 percentage point.
In relation to Brazil, an increase of 1 percentage point is expected by the Monetary Policy Committee (Copom ), which would leave the basic interest rate, the Selic at 12.75% per year.
In April, the Ibovespa had the worst monthly result since March 2020, falling 9.7%, while the dollar rose 3.79%, the highest monthly increase since September 2021. On Friday (29), the index fell 1.86%, to 107,876.16 points , and the US currency advanced 0.07% to R$4.943.
THE central bank will hold an auction of up to 15,000 traditional foreign exchange swap contracts on this trading floor for the purpose of rolling over the maturity date of June 1, 2022.
Dollar
The US currency reversed part of the gains that the real obtained in the first months of the year due to a combination of factors that influence the flow of purchase and sale of the dollar.
To the CNN Brasil Business experts associated this recent appreciation to two main factors: the prospect of higher interest rate hikes in the United States and fears regarding the lockdowns established in a number of economically relevant cities in China .
Higher US interest rates tend to attract investments to the country’s Treasury bond market, drawing capital from markets considered riskier than U.S the case of Brazil.
The measures to control the spread of the Covid-19 in China, which affect cities like Shanghai and Beijing, tend to reduce the world’s second-largest economy’s demand for commodities harming its main suppliers, including Brazil.
*With information from Reuters and Artur Nicoceli, from CNN Brasil Business
Source: CNN Brasil
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