Dollar opens higher, amid appreciation of American public bonds

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The previous day, the North American currency recorded a decline of 1.02%, quoted at R$5.0367. The main B3 stock index closed up 0.67%, at 116,534 points. Markets operate sideways, with caution towards the outside. Pexels The dollar opened higher this Tuesday (17), on a day of lower risk appetite in global markets and amid an appreciation of United States public bonds, which benefits the American currency to the detriment of others and risky assets such as stock markets. See the day in the markets below. Dollar At 9:02 am, the dollar rose 0.17%, quoted at R$5.0453. See more quotes. The day before, the North American currency closed the day with a drop of 1.02%, sold at R$5.0367, the lowest level of October so far. As a result, the currency began to accumulate: drop of 1.02% in the week; increase of 0.20% in the month; decline of 4.57% in the year. Ibovespa Ibovespa only starts operating at 10am. The previous day, the index closed with an increase of 0.67%, at 116,534 points. With the result, it started to accumulate: increase of 0.67% in the week; drop of 0.03% in the month; gains of 6.20% in the year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? What’s moving the markets? Tuesday begins with the release of some economic indicators in Brazil and the United States, which are on investors’ radar. However, the greater aversion to risks taking over the markets in this session is a consequence of the appreciation of North American public bonds – with emphasis on those maturing in 10 and 30 years, which rose to close to 4.8% and 4. 9%, respectively, close to the highest levels of income observed this year (which are also the highest since 2007). Last week, directors of the Federal Reserve (Fed, the central bank of the United States) commented that future interest rates (which are the yields on bonds with long maturities) are already so high, that this will probably be enough to slow down a little the economy and inflation. This happens, according to investment analyst Vitor Miziara, because some long contracts, such as mortgages and loans, are based on the yields on these securities. Thus, with higher interest rates, taking out credit also becomes more expensive and tends to reduce consumption levels. The concern, according to the analyst, is that very high interest rates for a long time could harm companies, increasing debt levels and even leading to requests for judicial recovery and bankruptcy. Even though the Fed has not yet signaled new interest rate hikes, which are currently between 5.25% and 5.50% per year, at its next meetings, Miziara explains that this increase in future bonds shows that investors are concerned about the direction of the world economy and are looking for safer assets. In this context, the factor that currently generates the most concern is the war between Israel and Hamas, which has already reached its 11th day, with thousands of deaths and injuries and a great diplomatic race by other countries and authorities, who are trying to prevent the war from happening. climb to other locations in the region. “It is worth noting that, in addition to the incalculable humanitarian impacts, the main economic impact of the conflict in the region tends to come from the effects on commodities – and more expensive oil in the world affects inflation, which Central Banks are trying hard to control in the post-pandemic period. And Higher inflation impacts the issue that never leaves the spotlight: interest rates”, comments Rachel de Sá, head of economics at Rico.

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