Dollar opens higher as investors await US employment report

THE dollar opened with a slight advance this Friday (7), and should end the first week of 2022 on a high, reflecting the possibility of interest rates in the U.S rise earlier and faster than anticipated.

Around 9:25 am, the US currency was up 0.04%, to R$5.682. The futures contract traded in B3 retreated 0.04%, to R$5.681.

On Thursday (6), the dollar had its first retreat of 2022, closing at R$ 5.68 after falling 0.57%. already the Ibovespa had the first high, rising 0.55%, to 101,561.05 points.

This Friday, investors are awaiting the release of the non-agricultural employment payroll report, which should provide important information on the situation of the job market in the United States.

If jobs are recovering at a level expected by the country’s central bank, the Federal Reserve, the expectation of anticipation of interest rate hikes should increase.

The bullish projection intensified after the release of the minutes of the last meeting the Federal Reserve’s monetary policy, in which the possibility of raising interest rates earlier and at a faster pace gained strength due to the country’s inflationary scenario.

As the North American market is traditionally more attractive, due to security, the rise in interest rates would attract even more investment flows, negatively affecting the markets of several countries, including Brazil, with the withdrawal of capital.

Internally, investors fear an increase in public spending by the federal government in response to claims of public servants by salary increase, which would aggravate the country’s fiscal situation.

In Brazil, the central bank will auction up to 17,000 traditional exchange swap contracts in this trading session for the purpose of rolling over the maturity of March 2, 2022.

*With information from Reuters