Dollar operates falling, on the day of interest rate decisions in Brazil and the USA; Ibovespa rises

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The day before, the North American currency had registered a drop of 0.13%, quoted at R$5.0406. The main stock index on the Brazilian stock exchange ended up 0.54%, at 113,144 points. bearfotos/Freepik The dollar was falling this morning, as investors continued to wait for interest rate decisions from the Federal Reserve (Fed, the North American central bank) and the Central Bank of Brazil. The decision by the Monetary Policy Committee (Copom) should be announced around 6:30 pm, while the Fed should make its announcement around 3 pm. Ibovespa, the main stock index on the Brazilian stock exchange, B3, was rising in the first minutes of trading. See the day in the markets below. Dollar At 10:27 am, the dollar was down 0.32%, quoted at R$5.0243. See more quotes. The day before, the North American currency ended the session with a decline of 0.13%, quoted at R$5.0406. As a result, it began to accumulate: gains of 0.56% in the week; increase of 0.28% in the month; drop of 4.50% in the year. Ibovespa At the same time, Ibovespa was up 0.64%, at 113,871 points. The day before, the index had closed with an increase of 0.54%, at 113,144 points. With the result, it started to accumulate: drop of 0.14% in the week; decline of 2.94% in the month; gain of 3.11% 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 main highlight of this session is “Super Wednesday” — as the day on which both the Fed and the Brazilian BC release their interest rate decisions is called. Here, the Monetary Policy Committee (Copom) meets to decide what the interest level will be over the next 45 days. According to experts interviewed by g1, the expectation is that the BC will make a new cut of 0.50 percentage points (pp) in the Selic, taking the rate to 12.25% per year. If confirmed, this will be the third consecutive cut in the basic rate — which will fall to the lowest level since May 2022, when it was at 11.75% per year. See the economic consequences for the drop in interest rates XP, for example, assessed, in a statement, that recent data on inflation and activity continue to suggest room for a reduction in interest rates. The institution projected a cut to 12.25% per year, but added that, in its view, an acceleration in the pace of cuts is increasingly less likely “in line with the rise in American interest rates and fiscal risks [nas contas públicas] persistent in the domestic context”. The financial market’s projection is that the interest rate will have a further drop in December this year and end 2023 at 11.75% per year. For 2024, the estimate is that the Selic rate will close the year at 9.25% per year. It is worth noting that the lower interest rates are, the greater the appetite for risk in the market tends to be. Thus, investors tend to sell their fixed income securities and buy shares, for example, boosting the stock market Brazilian rate up. In the United States, the market expectation is that the Fed will keep interest rates unchanged. Therefore, investors will focus mainly on the speeches of the institution’s president, Jerome Powell, later this Wednesday, to assess for how long the central bank can keep rates high.”We know that Jerome Powell will not call an end to policy tightening after seeing the impressive growth data,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, referring to Domestic Product Third quarter US gross domestic product (GDP), which grew at an annualized rate of 4.9%. Still on the international scene, European shares rose to a high of almost two weeks this Wednesday, driven by the health sector, with investors preparing for interest rate movements in the United States. Chinese indices, in turn, remained stable. Stocks were hurt by factory activity in China, which fell short of market expectations, raising questions about the state of the country’s fragile economic recovery at the start of the fourth quarter.

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