See the dollar quote and the Stock Exchange today – 05/04/2023 – Market

The dollar opened slightly lower this Thursday (4) after decisions on interest rates in Brazil and the United States.

On Wednesday (4), the Copom (Monetary Policy Committee) decided to maintain the Selic (basic interest rate in Brazil) at 13.75% per year, the Fed (Federal Reserve, the US central bank) raised American rates by 0.25 percentage points.

At 9:10 am (Brasília time), the spot commercial dollar retreated 0.15%, to R$ 4.9851 in the sale. At B3, at 9:10 am (Brasília time), the first contract dollar futures contract fell 0.18%, to R$ 5.0120.

This morning, it is the turn of the ECB (European Central Bank) to announce its decision on interest rates in the euro zone. The expectation is for an increase of 0.25 percentage points, raising the bloc’s rate to 3.75%.

The European bank is in the difficult position of having to make more of a financial impact on households and businesses to bring inflation back to its 2% target, up from 7% in April.

However, the effects of the ECB’s latest rate hikes, which stand at 3.5%, were starting to become visible.

Investors also expect the release of data on unemployment benefits in the US.

On Wednesday (4), the dollar closed below R$ 5.00 after the decision of the Fed (Federal Reserve, the American central bank). The Brazilian Stock Exchange, in turn, had a slight drop.

The Ibovespa fell 0.13% to 101,797 points. The dollar closed down 1.10%, at R$4.990.

In the US, the main indices also fell. The Dow Jones, S&P 500 and Nasdaq all fell 0.80%, 0.70% and 0.46% respectively.

Futures markets also retreated. Contracts with interest for January 2025 went from 11.98% to 11.89%. Those maturing in 2027 fell from 11.79% to 11.66%, while those from 2029 went from 12.10% to 11.99%.

The Fed’s decision to raise interest rates was already expected by the market. Despite the fact that the FOMC (Federal Open Market Committee) has signaled that a break in the rate hike cycle is possible, the president of the monetary authority, Jerome Powell, said that he still considers that the price hike is at a very high level and that pressures continue to be a cause for concern.

In Brazil, market projections were also confirmed with the Copom (Monetary Policy Committee) keeping the Selic at 13.75% per year for the sixth consecutive time. This Wednesday’s meeting was the first after the presentation of the fiscal framework and takes place under pressure from the government to lower interest rates.

With Reuters