Dollar opens higher and reaches R$ 4.93, waiting for clues about interest rates in the Fed minutes

[ad_1]

The day before, the American currency rose 1.28%, quoted at R$4.9148. Ibovespa, the stock exchange’s main stock index, fell 1.11%, to 132,697 points. Dollar banknotes bearfotos/Freepik The dollar opened higher this Wednesday (3), in another day of fearful global markets. Expectations are high for the minutes of the Federal Reserve (Fed, US central bank) meeting, which will be released today and may provide more clues than US monetary policy leaders think. Based on the latest speeches, analysts are more pessimistic about when rates will be cut, which would favor risk assets. In this pessimistic wake, Ibovespa, the main stock index on the Brazilian stock exchange, B3, closed yesterday in decline. See below for a summary of the markets. Dollar At 9 am, the dollar was up 0.45%, quoted at R$4.9370. See more quotes. The day before, the American currency rose 1.28%, selling for R$4.9148. In 2023, however, the year ended with a decline of 8.06%. The historic high of the American currency was on May 13, 2020, when it cost R$5.9007. Since then, it has already accumulated a drop of almost 18%. See the final balance sheet for 2023 below. drop of 0.17% in the week; decline of 1.28% in the month; loss of 8.06% in the year. Ibovespa Ibovespa only operates from 10am. The day before, the index fell 1.11%, to 132,697 points. Last year, the stock exchange closed with a gain of more than 22.28%. In annual terms, this is the best result since 2019, when the index had an accumulated increase of 31.58%. See the final balance sheet for 2023 below. increase of 1.08% in the week; gain of 5.38% in the month; increase of 22.28% 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? Understand what makes the dollar rise or fall What moved the markets? The main event this Wednesday is the release of the minutes of the Federal Reserve (Fed, US central bank) meeting. Investors are evaluating the direction of interest rates in the country, after a wave of pessimism about the timing and speed of reducing rates. As Reuters reports, market expectations were pricing in a 1.5 percentage point cut in Fed interest rates this year, below the 1.6 point seen last week. This reduction reflects fears that, perhaps, the North American central bank will not be able to be as lenient in conducting monetary policy as predicted at the end of last year. Also this Wednesday, the numbers from the Jolts report will be released, which shows the conditions of supply and demand for labor in the country. But the biggest expectation is for the main indicator of the week, the US employment report (“payroll”), which is one of the most analyzed by the Fed and will give more indications of the country’s economic situation on Friday.

[ad_2]

Source link