Dollar operates high, waiting for Fed and BC

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The day before, the US currency rose 0.06%, sold at R$5.1142. Dollar Pixabay The dollar operates on a high this Tuesday (31), awaiting decisions on interest rates in Brazil and the United States, which will be released this Wednesday. At 9:18 am, the US currency rose 0.2%, quoted at R$5.1245.See more quotes. On the previous day, the US currency ended the day up 0.06%, sold at R$5.1142. Despite the result, the dollar accumulates a drop of 3.1% 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? On the external front, investors are cautious anticipating a series of interest rate hikes by major central banks this week. Money market bets show that the Federal Reserve (US BC) is likely to raise its interest rate on Wednesday to between 4.50% and 4.75%, while the European Central Bank (ECB) and the Bank of England are expected to raise rates to 2.50% and 4.0%, respectively, on Thursday. For Rico’s team, the data point to a continued deceleration of inflation in the US. However, with the risk of recession still present, the market remains cautious with risky assets. “We had news of falling consumption, industrial production and inflation in the United States. GDP came in lower than expected and this increases the fear of recession, even if mild. All these factors contribute to interest rates not rising so much”, comments Rodrigo Cohen, investment analyst and co-founder of Escola de Investimentos. For Rafael Scardua, a partner at Matriz Capital, if there really are signs of easing in the increase in interest rates in the US, the markets should react positively. “If the decision makes room for the fall in interest rates to begin, companies will have more room to expand.” Real performance was worse in the Dilma and Bolsonaro governments, survey shows Over here, the Monetary Policy Committee (Copom) defines on Wednesday how the basic interest rate of the economy, the Selic, currently at 13.75%. Jaiana Cruz, financial planner and partner at AVG Capital, believes that the Selic drop may only become a reality from the second half of 2023, “because the scenario remains full of uncertainties”. “As we begin to see lower inflation, the BC will act to make the interest rate compatible. But today we have a scenario of fiscal risks and, until we see inflation actually improving, I believe that the strategy will follow maintenance of interest”, predicts Ricardo Jorge, specialist in fixed income and partner at Quantzed. Initial plugin text

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