Dollar operates high, focusing on the SVB crisis

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On Friday, the US currency advanced 1.30%, quoted at R$ 5.2077. Dollar bills pasja1000/Creative Commons The dollar operates on a high this Monday (13), with attention focused on the performance of American economic agents amid the crisis of bankruptcy of the largest financial institution since 2008, the Silicon Valley Bank (SVB), startup bank. At 9 am, the US currency advanced 0.47% in the session, quoted at R$ 5.2324. See more quotes. On Friday, the dollar closed up 1.30% in the session, quoted at R$5.2077. With the result, the currency closed the week up 0.15%, but still accumulates losses of 0.33% in the month and 1.33% in the year. READ ALSO: 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? DOLLAR: When is the best time to buy the currency? MONEY OR CARD? What’s the best way to take dollars on trips? What is messing with the markets? The market remains attentive to the interest rate scenario in the United States, as economic data from the country reinforce the perspective that the Fed should continue raising interest rates to try to contain inflation in the world’s largest economy and with the new credit risk in the banking sector in the country. On Friday, US authorities announced the closure of Silicon Valley Bank (SVB), a bank that finances startups. The news of the bankruptcy, the second largest in the US banking sector, caused apprehension among SVB customers who were unable to move the money invested in the bank. The impact of the demise of SVB is not yet clear, but US economic experts say they do not believe that the bank’s failure will cause a domino effect similar to the one that led to the 2008 financial crisis. The International Monetary Fund (IMF) said on Sunday that is monitoring the potential financial stability implications of the collapse of Silicon Valley Bank, but said it is confident Washington is taking appropriate regulatory action. “We are closely monitoring developments and potential implications for financial stability, and we have full confidence that policymakers in the United States are taking appropriate steps to address the situation,” an IMF spokesman told Reuters in a statement. . On Sunday, US officials launched emergency measures to bolster confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a broader financial crisis. After a dramatic weekend, regulators said customers of the failed bank would have access to all their deposits from Monday, and created a new instrument to give banks access to emergency funds. The Federal Reserve has also made it easier for banks to borrow in emergencies. The bank’s closure followed interest rate hikes that hit tech start-ups and an attempted capital increase that spurred a run on withdrawals. While the measures provided some relief for Silicon Valley companies and global markets on Monday, concerns about banking risks remain and cast doubt on whether the Fed will stick to its plan of aggressive interest rate hikes. “We believe that the measures taken by the Fed, Treasury and (Federal Deposit Insurance Corp – FDIC) will decisively break the psychological ‘cycle of doom’ in the regional banking sector,” said Karl Schamotta, chief market strategist at Corpay. “But fair or not, the episode will contribute to higher levels of volatility, with investors cautiously watching for further cracks to emerge as the Fed’s policy tightening continues.” Higher interest rates in the United States increase the yield on the country’s government bonds, which are considered the safest in the world. This favors the dollar against other currencies and mainly impacts emerging countries, such as Brazil. In Brazil, the Focus bulletin shows that financial market economists raised this year’s inflation estimate from 5.90% to 5.96% and also started to project a greater expansion of the Gross Domestic Product (GDP), from 0.85 % to 0.89% in the last week. Initial plugin text

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