THE dollar rose 0.32%, quoted at R$ 4.979, around 9:13 am this Wednesday (4), favored by an aversion to risks around the world as investors await interest rate decisions in Brazil and U.S in the so-called “super fourth”.
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, a move that favors the dollar.
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, due to still strong inflationary pressures.
Caution in the market is also intensified by the new rise in the price of Petroleum with the Brent type hovering around US$ 110 a barrel, after the European Union present a plan for a total ban on Russian oil . The rise raises concerns about global inflation, and the economic slowdown around the world with interest rate hikes to combat it.
THE central bank will auction up to 15 thousand traditional foreign exchange swap contracts in this trading session for the purpose of rolling over the maturity date of June 1, 2022.
On Tuesday (3), the dollar fell 2.10%, to R$ 4.964. already the Ibovespa fell by 0.10% to 106,528.09 points.
US currency
The dollar 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, and negatively influencing the prices of these products.
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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.
