Dollar opens lower with Brazilian inflation below expectations

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The day before, the North American currency ended the day with a drop of 1.44%, quoted at R$5.0562. The main B3 stock index rose 1.37%, to 116,737 points. Dollar operates at a low, with inflation below expectations. adobe stock The dollar opened lower this Wednesday (11), the day before a holiday in Brazil, after the release of September inflation, which came in below estimates. The Broad Consumer Price Index (IPCA) rose 0.26% in September, according to the Brazilian Institute of Geography and Statistics (IBGE), while the market projected a greater increase of 0.34%. The international market also had a more positive tone at the beginning of the day, reflecting new speeches by Federal Reserve officials (Fed, the American central bank), which increased the perception that new significant increases in interest rates in the United States may not be more necessary. See the day in the markets below. Dollar At 9:05 am, the dollar fell 0.25%, quoted at R$5.0435. See more quotes. In the previous session, the North American currency ended the day with a strong drop of 1.44%, quoted at R$5.0562. As a result, the currency began to accumulate: a drop of 2.04% in the week; increase of 0.59% in the month; drop of 4.20% in the year. Ibovespa Ibovespa only starts operating at 10am. The day before, the index closed up 1.37%, at 116,737 points. With the result, it started to accumulate: increase of 2.25% in the week; increase of 0.15% in the month; increase of 6.38% 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? The IPCA rose less than expected, but showed an acceleration compared to August, when it had risen 0.23%. The rise in inflation in September was driven, once again, by the increase in gasoline prices – which registered an increase of 2.8% in the month. In the last 12 months, inflation has risen by 5.19%, while in the year, so far, the index has increased by 3.50%, still within the inflation target of the Central Bank of Brazil (BC), of 3.25 %, which can range between 1.75% and 4.75%. Experts explain that controlled inflation is positive for the economy, especially for controlling interest rates. Selic, the country’s basic interest rate, is at 12.75% per year, after two cuts of 0.50 percentage points promoted by the Monetary Policy Committee (Copom). The expectation is that further cuts will take place in the coming months. In addition to the more positive tone in Brazil, abroad also brings good news, with emphasis on the United States. Fed officials stated that many contracts are already being guided by future interest rates, the yield on public bonds in the country, which reached the highest level since 2007 last week. This could generate an effect on the economy desired by the Fed, controlling inflation. Therefore, new rate hikes by the Fed will only be carried out if there is a great need and with great caution, as stated by the institution’s vice president, Philip Jefferson. However, the escalation of conflicts between Israel and Hamas continues to weigh on business. The main economic concern with the confrontation is in relation to oil, considering that the Middle East region is an important producer and exporter of the commodity. According to the International Monetary Fund (IMF), it is still too early to say whether the war will have an impact on the economy, but there is caution with the price of oil, which could have an impact on inflation and affect economic growth at a global level.

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