O dollar rose 0.2%, quoted at R$ 5.123, around 9:18 am this Tuesday (9), with the US currency having an adjustment after strong drops before the real and while the market awaits the release of July inflation of the United States, after the disclosure of the Brazilian indicator.
The Broad Consumer Price Index (IPCA) registered deflation, with a decrease of 0.68% in the month of July. It was the lowest rate since 1980, and the data reinforces the perspective that the Central Bank may have already ended the cycle of high interest rates or be close to the end.
In minutes, the Monetary Policy Committee (Copom) highlighted that the income supplementation policies recently approved by Congress “may increase the country’s risk premiums and inflation expectations”, which may require a further increase in the Selic rate. .
On Monday (8), the dollar fell by 1.07%, to R$ 5.113. already the Ibovespa closed up 1.81%, at 108,402.27 points.
overall feeling
Strong global risk aversion by investors, triggered by fears about a possible widespread economic slowdown due to a series of interest rate hikes around the world to contain record levels of inflation, has eased in recent days, reflecting expectations of a cycle of interest rate hikes. less aggressive in the United States.
The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve has signaled that it may make smaller hikes as the country’s economy already shows signs of slowing, seeking to avoid a recession.
Higher interest rates in the United States attract investments to the country’s fixed income due to its high security and favor the dollar, but harm bond markets and stock exchanges around the world, including the US.
Investors also monitor the state of the economy of China , which also shows signs of a slowdown linked to a series of lockdowns in relevant cities. The Chinese government is expected to intensify an effort to stimulate the economy, which should help maintain high demand for commodities.
In the domestic scenario, the Benefits PEC which creates or expands social benefits with an estimated cost of R$ 41 billion, was poorly received by the market, as it reinforces the fiscal risk by bringing new spending above the ceiling.
The Ibovespa and the real were harmed by the scenario, but an apparent greater optimism in the market has allowed a recovery.
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*With information from Reuters
Source: CNN Brasil
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