See the dollar rate and the Stock Exchange this Thursday – 02/16/2023 – Market

The dollar reversed initial losses and started to rise against the real this Thursday (16), following the maintenance of caution regarding interest rate hikes abroad and with investors waiting for the conclusion of the CMN (National Monetary Council) meeting, as follows monitoring the climate between the government and the Central Bank.

At 10:36 am (Brasília time), the spot dollar advanced 0.49%, at R$ 5.2439 on sale.

On B3, at 10:36 am (Brasília time), the first contract dollar futures contract rose 0.5%, to R$ 5.2535.

This Wednesday (15), the Stock Exchange closed higher, with investors reacting to the statements made by the Minister of Finance, Fernando Haddad, during an event by the BTG Pactual bank. The dollar also rose, reacting to the economic scenario in the United States, and following the global trend.

During the day, the Ibovespa surpassed 110,000 points at the day’s high, and closed up by 1.62%, at 109,600 points. The spot commercial dollar closed up 0.34%, at R$5.219.

Futures interest contracts showed a decline. When due in January 2024, the rate dropped from 13.44% at the close of this Tuesday (14) to 13.28% per annum. For January 2025, interest rates dropped from 12.86% to 12.61%. For 2027, the rate dropped from 13.13% to 12.88%.

At an event at the BTG Pactual bank this Thursday, Haddad also made nods to the Central Bank, reinforced the need for harmony between fiscal and monetary policies, defending the reduction of interest rates.

“Fiscal rule, monetary rule, the more you are demanding, I am in favor of demanding goals, otherwise you don’t work, if you set an inflation target, non-demanding fiscal target, the State stops working, it has to be demanding, it has to be rigorous, it has to be demanding, but a human being has to be able to do that,” said Haddad.

The minister also stated that the government of Luiz Inácio Lula da Silva (PT) should bring forward the announcement of the new fiscal rule to March, which will replace the spending ceiling.

The president of the Central Bank (BC), Roberto Campos Neto, stated that there is a need for fiscal discipline, but understanding that it is necessary to have a “more special eye on social issues”, in a new nod to the government of Luiz Inácio Lula da Silva (PT) .

In exchange, the appreciation of the dollar against the real follows the trend seen against other major global currencies. The DXY index, which measures the average world performance of the US currency, rose 0.58% close to 6:45 pm (Brasília time).

Stock exchanges in New York started the day in decline, but reversed the trend in the afternoon. The market started the day reacting to the retail sales indicator in the United States, which rose 3% in January compared to December. This number indicates a still heated US economy, which may keep interest rates high for longer.

But during the day, the market began to see the “glass half full”. According to analysts interviewed by the Bloomberg agency, the retail data has come to be interpreted as a sign of strength in the American economy, while inflation slows down, even if more slowly than expected.

The Dow Jones Industrial Average closed up 0.11%. The S&P 500 rose 0.28%. And the Nasdaq ended the day up 0.92%.

With Reuters