Dollar operates on the rise and Ibovespa rises, with American interest rates still on the radar

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The previous day, the main stock index on the Brazilian stock exchange closed down 0.60%, at 128,524 points, the lowest level in just over a month. The North American currency rose 0.09%, quoted at R$4.9296. Dollar operates lower Karolina Grabowska The dollar reversed its signal and operates higher this Thursday (18), in yet another trading session marked by uncertainty regarding the direction of interest rates in the United States. The day is one of weaker economic agenda in Brazil and abroad, with attention focused on the speech that a director of the Federal Reserve (Fed, the American central bank) should make later. Meanwhile, investors are reviewing weekly unemployment insurance data in the United States, which shows that the job market in the world’s largest economy remains strong. Ibovespa, the main stock index of the Brazilian stock exchange, B3, is operating at a low. See below for a summary of the markets. Dollar At 11:10 am, the dollar rose 0.12%, quoted at R$4.9353. See more quotes. The previous day, the North American currency rose 0.09%, quoted at R$4.9296. With the result, it accumulated: increase of 1.50% in the week; and gains of 1.59% in the month and year. Ibovespa At the same time, Ibovespa fell 0.03%, to 128,483 points. The day before, the index fell 0.60%, to 128,524 points, the lowest level in more than a month. With the result, it accumulated: decrease of 1.88% in the week; falls of 4.22% 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? On a day with a weaker economic agenda, global markets operate close to stability as they await new indicators and speeches throughout the day. In the United States, attention is focused on what the leaders of the Federal Reserve (Fed, the American central bank) say. Today, the person expected to speak to the public is Raphael Bostic, president of the Atlanta Fed. In recent days, other leaders have spoken more cautiously about the expectation of a reduction in interest rates in the world’s largest economy. Christopher Waller, head of the Fed, said the institution should not rush to cut its benchmark interest rate until it is clear that low inflation will be sustained. Waller also commented that the cuts must be made in a “methodical and careful” way, and not through large and rapid reductions, despite the US being close to the inflation target of 2%. The statements contradict recent market expectations, which are betting that the North American BC should start reducing loan costs from March, and could reduce rates by 1.5 percentage points by the end of the year. However, these expectations have already begun to change. According to the CME Group’s FedWatch tool, 61% of investors believe that the Fed should start cutting interest rates in March. This number was 80% at the end of 2023. Since July, the Fed has worked with a base rate in the range of 5.25% to 5.5%.

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