Dollar opens lower on Copom day, with expectation of maintaining the Selic rate at 13.75%

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On the previous day, the US currency rose 0.42%, sold at R$ 4.7953. Dollar operates low Pixabay The dollar opened low this Wednesday (21), on a day marked by market expectations for the conclusion of the meeting of the Monetary Policy Committee (Copom) of the Central Bank of Brazil (BC). Investors and analysts expect the Copom to keep the Selic, basic interest rate, unchanged at 13.75% per year, the level it has been at since August last year. At 9:03 am, the US currency fell 0.16%, at R$ 4.7878. See more quotes. On the previous day, the dollar rose 0.42% and closed short at R$4.7953. As a result, the currency began to accumulate falls of: 0.48% in the week; 5.48% in the month; 9.15% in the year. 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 is tourism more expensive? MONEY OR CARD? What’s the best way to take dollars on trips? DOLLAR: When is the best time to buy the currency? What is messing with the markets? Although a maintenance of the Selic rate at 13.75% per annum is widely expected and is already priced in by the market, the main focus of investor attention will be the Copom communiqué, which is released right after the end of the meeting. In the document, the Committee offers the market a perspective on what its next steps will be in relation to the course of monetary policy in the country. The projections of the vast majority of banks and other financial institutions point to interest rates starting to fall in August. According to the latest edition of Boletim Focus, a BC report that brings a median of economists’ expectations for Brazilian economic indicators, the Selic rate should end the year at 12.25% per year – or 1.50% less than the current level. Abroad, the day has few highlights on the economic agenda. The main one is the speech by Jerome Powell, chairman of the Federal Reserve (Fed, the US central bank), who speaks in the US House of Representatives at the end of the morning. Investors always follow these speeches, as they can bring signals about the trajectory of interest rates in the largest economy in the world. Rates are currently between 5.00% and 5.25% a year after the Fed opted to keep them unchanged at its last meeting last week. However, the institution has already highlighted that it may increase the country’s interest rates again in the coming months if inflation rises again with more force.

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