Dollar operates in decline this Wednesday, interest rate decision day in the US

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On the eve, the US currency fell 0.08%, quoted at R$ 4.8624, renewing the lowest closing since June 2022. Dollar banknotes bearfotos/Freepik The dollar operates in decline this Wednesday (14), with all eyes on the interest rate decision of the Federal Reserve (Fed, the US central bank), which should be released today. At 9:05 am, the US currency retreated 0.07%, quoted at R$ 4.8590. See more quotes. On the eve, the dollar fell by 0.08%, quoted at R$ 4.8624, renewing the lowest level in a year. As a result, the currency began to accumulate falls of: 4.15% in the month; 7.87% in the year. UNDERSTAND: What makes the dollar rise or fall against the real COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why is tourism more expensive? MONEY OR CARD? What’s the best way to take dollars on trips? DOLLAR: When is the best time to buy the currency? What is messing with the markets? The market is attentive to the Federal Reserve (Fed) interest rate decision, which should be released on Wednesday (14). Bets are that the institution should keep borrowing costs unchanged in the range of 5% to 5.25% for the first time since it started the high cycle in March 2022. Investors will also be attentive to the chair’s press conference of the Fed, Jerome Powell, after the meeting, seeking to assess the central bank’s monetary policy trajectory. Traders see a 95% chance the US central bank will keep rates at current levels and a 63% chance there will be a 0.25 percentage point rise in July, according to the CME’s Fedwatch tool. That’s because at the end of their meeting this Wednesday, Fed officials may signal that more rate hikes are yet to come, as they assess how the economy is evolving, whether the financial system remains stable and whether inflation continues to fall. While it is likely that they will not opt ​​for a rate hike after 10 consecutive hikes, Fed officials should show, both in their language and in their projections, that one or perhaps two more 25 percentage point hikes are still needed by the end of 2023. “Assuming the Fed takes a break, it’s possible that the Fed’s statement will include words designed to quell expectations that a break might lead to a cut,” said Richard Flynn, managing director of Charles Schwab UK , to the Reuters agency. S&P 500 and Nasdaq futures rose on Wednesday as investors hope the Federal Reserve will not raise interest rates.

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