Dollar operates on the rise, with caution due to American interest rates and war in the Middle East; Ibovespa falls

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The previous day, the North American currency recorded a drop of 0.02%, quoted at R$5.0529. Ibovespa, the main stock index on the Brazilian stock exchange, B3, fell 0.05%, to 114,004 points. Dollar starts the day on a high. Burak The Weekender/Pexels The dollar opened higher this Friday (20), following a greater aversion to risks that affects markets globally this trading session. On the radar, concern continues about the direction of interest rates in the United States, which are already at the highest level in two decades and could rise further. Furthermore, the war between Israel and Hamas, which has reached its 14th day and is causing an increase in tensions in the Middle East, also weighs on business, mainly due to the price of oil, which is on the rise. Ibovespa, the main stock index on the Brazilian stock exchange, B3, is falling, with a sharp drop in Vale’s shares – the company with the greatest weight in the index’s composition. See the day in the markets below. Dollar At 10:45 am, the dollar rose 0.16%, quoted at R$5.0612. See more quotes. The day before, the North American currency closed the day practically stable, with a slight drop of 0.02%, sold at R$5.0529, after fluctuating a lot throughout the day. As a result, it began to accumulate: drop of 0.70% in the week; increase of 0.52% in the month; decline of 4.26% in the year. Ibovespa At 10:45 am, Ibovespa fell 0.40%, to 113,554 points. At the same time, Vale’s shares fell more than 2%, following the devaluation of iron ore abroad. The commodity is falling, reflecting poor prospects for the Chinese economy, the largest demander of ore in the world. The previous day, the index closed down 0.05%, at 114,004 points, also after fluctuating a lot. As a result, it began to accumulate: drop of 1.51% in the week; decline of 2.20% in the month; gain of 3.89% in the 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? What’s moving the markets? A speech by Jerome Powell, president of the Federal Reserve (Fed, the American central bank), at the end of yesterday continues to stir the markets in this session. The director said that the Central Bank of the United States is “proceeding with caution” in relation to further increases in the country’s interest rates, but highlighted that the persistence of inflationary pressure and the resilient job market remain on the institution’s radar. “The speech did not bring much impetus to investors, as Powell highlighted the need for a slowdown in the labor market to return inflation to the target – signaling that the time is not yet for relief in the interest rate scenario”, explains the boss of economics at Rico, Rachel de Sá. Investors believe that, even if the Fed does not promote new rate increases in the coming months, interest rates should remain at a high level for longer than expected. As a result, the yield on American public bonds – which are linked to the Fed’s interest rates – has soared in recent weeks, with the 10-year bond (considered one of the safest in the world) yesterday surpassing the 5% range at the latest. year, for the first time since 2007. Higher interest rates in the United States worry the whole world, especially emerging countries, because, in times of uncertainty, investors migrate to assets that offer greater security, benefiting the dollar and American fixed income to the detriment of other risky currencies and markets. This cautious scenario is reinforced by the war between Israel and Hamas. According to Rachel, the announcement of relief in American sanctions against Venezuelan oil was not enough to reverse concerns about the supply of the commodity in the world. “The perception is that, after years of low investment in the Latin American country, production capacity is below expectations”, points out the economist.

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