Dollar operates with volatility and Ibovespa falls after higher-than-expected inflation data in the USA

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The previous day the North American currency rose 0.02%, quoted at R$ 4.9756. The main B3 stock index ended with an increase of 0.26%, at 128,006 points. Dollar operates at a low Karolina Grabowska The dollar operates with volatility this Thursday (14), oscillating between highs and lows, following the release of the most recent inflation data to producers in the United States. The Producer Price Index (PPI) rose 0.6% in February, against expectations of a 0.3% increase and showing an acceleration compared to the previous month, when the index rose 0.3%. These numbers are widely observed because they provide a perspective on how prices for consumers should behave, since if there is an increase in prices for producers, this tends to be passed on at the end. In this same scenario, Ibovespa, the main stock index on the Brazilian stock exchange, B3, is operating downwards. See below for a summary of the markets. Dollar At 10:45 am, the dollar fell 0.02%, quoted at R$4.9745. See more quotes. The previous day, the North American currency rose 0.02%, quoted at R$4.9756. With the result, it accumulated: drop of 0.12% in the week; gain of 0.06% in the month; and an increase of 2.54% in the year. Ibovespa At the same time, Ibovespa fell 0.24%, to 127,694 points. The day before, the index rose 0.26%, to 128,006 points. With the result, it accumulated: increase of 0.47% in the week; decline of 1.05% in the month; and a drop of 4.86% in the year. Understand what makes the dollar rise or fall CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? What is changing the market? Abroad, investors pass on inflation to producers in the United States, which came in above expectations, with a monthly increase of 0.6%. Over the last 12 months, prices rose 1.6%, against a projection of 1.1%. The worse-than-expected result for American producer inflation raises fears that consumer inflation could also accelerate in the coming months, which would delay a fall in interest rates in the United States. The prospects are that the Federal Reserve (Fed, the US central bank) could begin a cycle of cutting interest rates in the first half of the year. Currently, rates are in the range between 5.25% and 5.50% per year. The market sees a 66% chance that the first cut will occur in June, according to the CME FedWatch tool. Still abroad, in Europe, Yannis Stournaras, president of the Central Bank of Greece and member of the Council of the European Central Bank (ECB), said that the institution could carry out up to two interest cuts in euro zone interest rates in the first semester. Yesterday, the president of the Central Bank of Latvia and member of the ECB, Martins Kazaks, had already said that the cycle of rate cuts in the bloc should begin soon, if inflation continues within the institution’s expectations. Prospects for lower interest rates, both in the United States and in Europe, benefit risky assets, such as stock markets and emerging country currencies, because the trend is for lower yields on public bonds in developed countries, which are considered safer. . In Brazil, the highlight of the economic agenda is retail sales data. In January, retail trade grew 2.5% compared to December, according to the Brazilian Institute of Geography and Statistics (IBGE). In 12 months, the increase was 1.8%. The result was well above market expectations, which expected a much more modest increase of 0.2%. *With information from Reuters news agency

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