THE dollar rose 0.19%, quoted at R$ 4.830, around 9:30 am this Thursday (26), with investors still reflecting the disclosure on the eve of the minutes of the last meeting of the Federal Reserve whose process of raising interest rates should slow down the US economy.
THE minute brought little news regarding the next steps of the country’s high interest rate cycle and the reduction of the balance of purchases of securities by the autarchy. As noted earlier, most members of the Fed’s Open Market Committee (FOMC) felt that 0.5 percentage point hikes in June and July would be appropriate.
In addition, the release of the revised Gross Domestic Product (GDP) of the United States in the first quarters is on the market’s radar, which should give more clues about the country’s economic situation, amid fears of recession.
In this session, the Central Bank will auction up to 15 thousand traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of July 1, 2022.
On Wednesday (25), the dollar had a high of 0.17%, to R$ 4.821. already the Ibovespa closed the trading session stable, with a variation of 0%, at 110,579.81 points.
global pessimism
The most recent instigator of global risk aversion was the interest rate hike in the US , announced by the Federal Reserve on May 4. Despite discarding hikes of 0.75 pp or a risk of recession, the municipality signaled at least two more hikes of 0.5 pp
Higher interest rates in the United States attract investments for the country’s fixed income due to its high security, but it harms stock exchanges around the world, including the North American ones.
Along with a series of interest rate hikes around the world, lockdowns in china to try to contain Covid-19, projections of a strong economic slowdown and even the risk of a global recession have increased, hurting markets and increasing investor risk aversion.
However, with the prospect that these restrictions may be lifted in June, Chinese demand is expected to return to previous levels, which has returned to favor commodity exporters and relieves some of the pressure on the real.
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*With information from Reuters
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
