Dollar opens higher on the eve of the Copom, with investors awaiting a decision on interest rates

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Last Friday, the US currency advanced 0.15%, quoted at R$ 4.9874; in April, it accumulated a fall of 1.61%. Dollar banknotes John Guccione/Pexels The dollar opened higher on Tuesday (2), while investors await the decision on interest rates in Brazil and the United States tomorrow. Expectations are that the Central Bank of Brazil (BC) will maintain the Selic rate at 13.75%, while the Federal Reserve (Fed, the US central bank) should raise its interest rates by 0.25%. At 9:02 am, the American currency rose 0.18%, quoted at R$ 4.9962. See more quotes. Last Friday (28), the last trading session of April, the dollar closed with a rise of 0.15%, sold at R$ 4.9874. Despite the result, the currency accumulated: 1.40% drop in the week; Reduction of 1.61% in the month; Low of 5.51% in the year. ALSO READ: Falling dollar: understand if it’s time to buy the currency and the main perspectives ahead UNDERSTAND: What makes the dollar rise or fall in relation to the real COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why that tourism is more expensive? DOLLAR: When is the best time to buy the currency? MONEY OR CARD? What’s the best way to take dollars on trips? Flourish – visualization/12328526?1311653 If the economy continues to slow down due to interest rates, there will be ‘problems’ in tax collection, says Fernando Haddad What’s messing with the markets? Analysts and investors await the Copom’s decision tomorrow, with expectations that the institution will maintain the Selic rate at 13.75% per annum, in order to control the rise in prices. Inflation projections for 2023 continue to rise above the Central Bank’s target. According to the latest edition of Boletim Focus – a report that brings together the economic perspectives of several market specialists – the Extended Consumer Price Index (IPCA), which reflects the country’s official inflation, should show an increase of 6.05% this year compared to the previous 12 months. If the projection materializes, this will be the third consecutive year in which inflation is above the target – which for 2023 is 3.25%, ranging from 1.75% to 4.75%. Even with the high prospects for inflation, this week’s Focus also showed an increase in expectations for the Brazilian Gross Domestic Product (GDP) this year, from a growth of 0.96% in last week’s report to 1.00 % this week. On the international scene, attention is also focused on monetary policy decisions, mainly in the United States. This Wednesday, the Fed announces its new interest rate. Market expectations, according to BTG Pactual, are for an increase of 0.25%, which would take rates to a level between 5.00% and 5.25%. High interest rates in the United States weigh against the Brazilian currency. Experts explain that, with these high rates, American public bonds, considered the safest in the world, deliver more attractive returns and favor the migration of investors to the country’s assets – which raises the dollar to the detriment of currencies from other countries, especially emerging ones. There will also be a decision on interest rates in the euro zone, on Thursday (4), with projections that the European Central Bank will raise rates by 0.50%. Initial plugin text

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