Dollar operates low, with US GDP rising above expectations in 2023; Ibovespa rises

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The previous day, the North American currency fell 0.47%, quoted at R$4.9316. The main stock index on the Brazilian stock exchange ended with a drop of 0.35%, at 127,816 points. Dollar operates slightly lower Karolina Grabowska The dollar operates lower this Thursday (25), reflecting the Gross Domestic Product (GDP) of the United States, which rose 2.5% in 2023, above that recorded in 2022. In the last quarter of the year, the largest economy in the world grew 3.3%, well above market projections, boosting annual performance. Ibovespa, the main stock index of the Brazilian stock exchange, B3, is operating on the rise. See below for a summary of the markets. Dollar At 12:20 pm, the dollar fell 0.46%, quoted at R$4.9088. See more quotes. The previous day, the North American currency fell 0.47%, quoted at R$4.9316. With the result, it accumulated: increase of 0.10% in the week; and gains of 1.63% in the month and year. Ibovespa At the same time, Ibovespa rose 0.43%, to 128,366 points. The day before, the index fell 0.35%, to 127,816 points. With the result, it accumulated: increase of 0.14% in the week; falls of 4.75% in the month and 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? Understand what makes the dollar rise or fall What is moving the markets? The market’s attention is focused, above all, on the fourth quarter GDP in the United States. The world’s largest economy grew 3.3% between October and December, according to the Department of Commerce, well above analysts’ projections, which pointed to a less significant increase of 2%. The fourth quarter number was below what was recorded in the previous quarter, when the American economy grew 4.9%. But, with the data much stronger than expected, this slowdown did not weigh on the market analysis. The result, according to experts, was driven by a solid job market and consumer spending. In the entire year 2023, the United States grew 2.5%, compared to growth of 2.1% recorded in 2022. These numbers raise the prospect that the Federal Reserve (Fed, the American central bank) may be able to make a “soft landing” with the country’s economy. In practice, this means that the cycle of high interest rates in the United States to control inflation would be able to slow down activity a little, precisely to contain the rise in prices, but without resulting in a stronger economic recession. Currently, interest rates in the world’s largest economy are between 5.00% and 5.25% per year and there is a lot of expectation about when the Fed should start the interest rate cutting cycle. In Europe, the European Central Bank (ECB) decided to keep its basic interest rate unchanged, at a record level of 4% and noted that inflation continued to fall, also thanks to high borrowing costs. “The downward trend in underlying inflation has continued, and previous interest rate increases continue to be transmitted strongly to financing conditions,” the ECB said in a statement.

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