Dollar operates at a low, with October inflation lower than expected; Ibovespa rises

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The previous day, the North American currency advanced 0.69%, quoted at R$4.9409. The main stock index of the Brazilian stock exchange fell 0.12%, to 119,034 points. Dollar reflects inflation data and the direction of interest rates in the USA Pixabay The dollar is falling this Friday (10), after the release of the Broad Consumer Price Index (IPCA). According to the Brazilian Institute of Geography and Statistics (IBGE), inflation rose 0.24% in October, below financial market expectations. The appreciation of the real against the American currency is only not more pronounced because investors around the world still echo the statements of the president of the Federal Reserve (Fed, the American central bank), who stated that interest rates in the United States may still have to rise further to control the advance of the country’s inflation. Ibovespa, the main stock index of the Brazilian stock exchange, B3, is operating on the rise. See the day in the markets below. Understand what makes the dollar rise or fall Dollar At 2:51 pm, the dollar fell 0.66%, quoted at R$4.9082. See more quotes. The day before, the North American currency rose 0.69%, selling for R$4.9409. With the result, it started to accumulate: increase of 0.69% in the week; drop of 1.98% in the month; decline of 6.39% in the year. Ibovespa At the same time, Ibovespa rose 1.44%, to 120,750 points. The previous day, the index had a slight drop of 0.12%, to 119,034 points. With the result, it started to accumulate: increase of 0.40% in the week; increase of 4.85% in the month; increase of 8.11% in the year. MONEY 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? Inflation in October rose 0.24%, once again driven by the sharp rise in air ticket prices, which soared 23.7% last month. Despite the advance, the IPCA showed a slight deceleration in relation to September, when it rose 0.26%. As a result, Brazil will accumulate inflation of 4.82% in 12 months, while in 2023, so far, the accumulated rate is 3.75%. The numbers came in below the expectations of the financial market, which expected an increase of 0.29% for October. The Food and beverages group rose again last month, with an increase of 0.31%. According to Maykon Douglas, from Highpar’s Research area, food attracts attention because it could rise more strongly in the coming months, as a result of El Niño. “However, this is not an increase in prices like the one we saw in the last two years; and the underlying items, which matter most at the moment for monetary policy, continue to disinflate and have behaved again. In other words, despite what we saw in food, the quality remains benign”, highlights the specialist. Investors also continue to reflect on statements by Fed President Jerome Powell regarding the direction of United States monetary policy. Yesterday, he said Federal Reserve officials are “not confident” that interest rates are high enough to end the battle against inflation. The Fed chief also said that the US central bank “is committed to achieving a monetary policy stance that is sufficiently restrictive to reduce inflation to 2% over time.” And he warned: “We are not confident that we have achieved that posture.” “If it is appropriate to further tighten monetary policy, we will not hesitate to do so,” he said, at a research conference at the International Monetary Fund (IMF). Powell’s signal has repercussions on the Brazilian stock market and the price of the real. In practice, higher interest rates in the United States mean, among other things, migration of investments to North American public bonds and flight of dollars, with consequent pressure on the exchange rate. This happens because these bonds (Treasuries) are considered the safest investments in the world. When they start to yield more, it is normal for there to be an exit of investors from other countries — especially emerging ones — like Brazil.

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