Dollar has a slight rise with tax reform; see quotation – 07/06/2023 – Market

The dollar opened at a slight high this Thursday (6) after registering high the day before amid expectations for the vote on tax reform in the House. The market also monitors the Fed (Federal Reserve, the US central bank), which should promote new interest rate hikes in the United States later this year.

On Wednesday (5), the US monetary authority released the minutes of its June monetary policy meeting, which showed that, although most of its members have defended a pause in interest rates in June, some of them consider a new tightening appropriate.

Investors await the release of unemployment data in the United States this Thursday, which may clarify the scenario for the Fed’s next decision.

At 9:11 am (Brasília time), the spot dollar advanced 0.21%, to R$ 4.8618 in the sale. On the B3, at 9:11 am (Brasília time), the first contract dollar futures contract rose 0.25%, to R$ 4.8840.

The Brazilian Stock Exchange rose 0.39% and closed at 119,549 points this Wednesday (5), supported by market expectations regarding the vote on tax reform in the Chamber of Deputies. The dollar also rose and ended the day quoted at R$4.850, with an appreciation of 0.22% after the release of the Fed minutes.

The processing of the tax reform was the main focus of attention of investors in Brazil. The text should be voted on this week, but internal conflicts in Congress raised concerns, say analysts, which also contributed to the rise of the dollar this Wednesday.

The futures markets maintained the trend of the beginning of the day and registered a slight increase. Interest rates for 2024 went from 12.79% to 12.81%, while those for 2025 went from 10.71% to 10.76%.

Increases in shares of Magazine Luiza (1.18%) and Itaú (0.79%), which were the only ones among the most traded that had a positive performance, supported the Ibovespa. The biggest gain of the day was with BRF, which rose 10.27% after announcing a share offering that will allow the completion of an investment by the Saudi Arabian company Salic and Marfrig in the Brazilian company.

Pressured the performance of the Ibovespa, however, falls by Petrobras (0.33%) and Vale (0.98%), the biggest on the Exchange. While the oil company is undergoing correction after a strong recent appreciation, the mining company was affected by concerns about steel demand in China.

US stock indices have already registered losses since the beginning of the day, precisely because of concerns about a new interest rate hike in the country. The Dow Jones, S&P 500 and Nasdaq all fell 0.38%, 0.20% and 0.18% respectively.