Dollar opens lower after losses in the previous week, with IBC-Br and Fed on the radar

THE dollar falls this Monday (17), after ending the previous week in decline with an alleviation of concerns about high interest rates in U.S. Pressure on the federal government around a raise for civil servants remains under the radar, posing a fiscal risk.

At around 9:25 am, the US currency retreated 0.11% to R$5.506. The dollar futures contract traded on B3 it fell 0.47%, to R$ 5.508.

In the previous week, the Ibovespa closed up 4.1%, the best performance since the week ended March 5, 2021. The dollar, meanwhile, lost 2.12%, the biggest weekly drop since the first week of November 2021.

Investors are still focused on raising interest rates in the United States, with the market expecting an increase in March.

Fears on the subject eased last week after speeches by the president of Federal Reserve, Jerome Powell, and an inflation data in line with expectations.

Even so, any rise in interest rates affects investments in Brazil, as it makes US Treasury bonds even more attractive to investors.

In Brazil, pressure on the federal government around the salary increase for civil servants is on the radar, with a strike scheduled for this Tuesday (18). The salary increase would represent more spending for the government, with fears of a fiscal lack of control, which negatively affects the real against the dollar.

The Central Bank Economic Activity Index was also released (IBC-Br), considered the preview of the Gross Domestic Product (START). It rose 0.69% in November compared to October, slightly higher than expected.

THE central bank will auction up to 17 thousand traditional foreign exchange swap contracts in this trading session for the purpose of rolling over the maturity date of March 2, 2022.

With information from Reuters