See the dollar exchange rate today – 05/19/2023 – Market

The dollar opened in decline this Friday (19) after having gained strength the day before with the optimism of American investors about an agreement to increase the debt ceiling in the United States. Furthermore, signals of a possible further hike in interest rates by the Fed (Federal Reserve, the US central bank) also supported the currency.

This Friday, there is expectation for a speech by Fed Chairman Jerome Powell, which may detail the bank’s view on the latest US economic data and make it clearer whether there is room for a new increase in interest rates.

In Brazil, the BC (Central Bank) releases its IBC-Br (economic activity index) for the month of March.

At 9:02 am (Brasília time), the spot commercial dollar retreated 0.35%, to R$ 4.9514 in the sale. On the B3, at 9:02 am (Brasília time), the first contract dollar futures contract fell 0.32%, to R$ 4.9615.

The Brazilian stock exchange and the dollar rose on Thursday (18) amid optimism about the course of the fiscal framework in Congress and with the discussion on the debt ceiling on the radar.

The American currency was also favored by statements by Fed officials (Federal Reserve, the US central bank) who reinforced the thesis that the Fed can continue to raise interest rates.

As a result, the Ibovespa closed up 0.59% to 110,108 points. It was the first time since February that the index surpassed 110,000 points in a session.

The dollar was up 0.64%, at R$ 4.967.

On Wednesday, the Chamber of Deputies approved the urgency regime for the new fiscal rule, giving priority to the project. The forecast is that the text will be appreciated next week.

The rapporteur for the framework in the Chamber, Cláudio Cajado, reduced the list of expenses that are exceptions to the rule and the creation of adjustment triggers in case the government accounts come in below expectations – such as a ban on public tenders or readjustments for civil servants.

The processing of the new fiscal rules in Congress is closely monitored by investors, who expect a reduction in the perception of risk in the country with the approval of the text.

“The economic team managed to preserve the backbone of the text, although it made significant concessions. Despite the text not being considered ideal in terms of fiscal austerity, the signal that this imbroglio will be resolved should boost domestic assets”, say analysts at Raise Investments.

In this scenario, interest contracts maturing in January 2024 fell slightly, going from 11.32% to 11.31%, while those for 2025 fell from 11.76% to 11.70%. In the long term, contracts for 2026 were 11.27% to 11.21%.

The American indices also helped the Ibovespa to close in the positive. The Dow Jones, S&P 500 and Nasdaq were up 0.34%, 0.94% and 1.51% respectively.

The DXY index, which measures the performance of the dollar against other strong currencies, rose 0.65% this Thursday, indicating an improvement in the performance of the American currency.