It was the third consecutive trading trading of the border, which closed at the highest level since April 17 (R $ 5,8037) and began to accumulate appreciation of 1.21% in the first four trading sessions of May
It accentuated the rhythm of the afternoon in the local market in line with the strengthening of the US currency abroad after Federal Reserve President Jerome Powell, adopting a cautious tone around the conduct of monetary policy, avoiding signs about eventual interest cuts.
With a maximum of R $ 5,7635, the dollar in cash ended the day up 0.61%, to R $ 5,7454. It was the third consecutive trading trading of the border, which closed at the highest level since April 17 (R $ 5,8037) and began to accumulate appreciation of 1.21% in the first four trading sessions of May. Currency losses in the year, which have already exceeded 8%, is now 7.04%.
As expected, the Fed maintained the interest rate between 4.25% and 4.50%, recognizing that the risks of progress in unemployment and inflation increased due to the tariff of US President, . Assets here and outside showed modest reaction to the tone of the statement.
The game changed from 3:30 pm with Powell’s statements at a news conference. The US BC President said that monetary policy is well positioned, although there is an increase in tension to comply with his double term: inflation in the goal and maximum employment.
Powell stressed that the Fed is not in a situation of promoting a preventive interest in interest, as tariffs should result in inflationary repique. “I cannot say with confidence that I know what is the appropriate path to the rate, but our policy is not highly restrictive; it is modestly restrictive,” said the Fed President.
Dollar behavior thermometer compared to a basket of six strong currencies, the DXY index, which has been rise since the beginning of the day, renewed maximum in the afternoon, above 99,900 points. The US currency rose from most emerging currencies and commodity-exporting countries, with two pairs of the real-Mexican and Colombian pesos-as one of the exceptions.
Earlier, the dollar was already on the rise both out there and in the local market. In addition to pre-fed caution, there seemed to be a favorable adjustment to American assets, pause in the rotation of wallets towards strong currencies and emerging markets in the face of onset signs of tariff negotiation between China and the USA.
In the early afternoon, US Treasury Secretary Scott Bessent said commercial negotiations with China, which should take place in Switzerland, start on Saturday. On the Chinese side will be the Chinese vice-prime minister and economic tsar of Xi Jinping, he Lifeng. On Tuesday night, the People’s Bank of China (PBOC, the country’s BC) announces monetary stimulation measures that were seen as insufficient to counterbalance the effects on the activity caused by the trade war.
Here, the expectations are that the Monetary Policy Committee (Copom) announces a high interest rate on Wednesday night, with more inclined bets for an increase of 0.50 percentage point, but does not commit to the end of the tightening cycle, given external uncertainties and high inflation expectations.
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From the middle to the late afternoon, he accompanied him the relative improvement in New York -where the broad index, S&P 500, oscillated from the negative to the positive during the speech of Federal Reserve President Jerome Powell, as well as Nasdaq -but ended the session still down 0.09%, at 133,397.52 points the caution precedes the decision of the monetary policy night period. (Copom) of the Central Bank, which should increase Brazil’s reference interest rate by a percentage point to 14.75% per year. The spin was moderate to R $ 19.7 billion in the session. In the week, Ibovespa yields 1.28%, and in the aggregate in the month falls 1.24%. In the year, it rises 10.90%.
In B3, part of the financial sector advanced on Wednesday pre-cabin, such as Itaú (PN +1.10%), Santander (Unit +0.35%) and Banco do Brasil (on +0.42%). Petrobras ended the day without a single direction, with ON 0.65% up and PN of 0.46%. The highest weight in Ibovespa, Vale On, closed at a slight low of 0.19%. At the winning tip of the index, highlight for Eneva (+4.15%), Klabin (+2.68%) and Minerva (+2.57%). On the opposite side, RD Health (-14.76%), let’s (-7.05%) and ultrapar (-4.00%).
In turn, in New York, the three main stock rates, with Dow Jones ahead (+0.70%), signed the rise towards the closure, with S&P 500 showing 0.43%gain and 0.27%NASDAQ at the end of the day.
*With information from Estadão Content
Posted by Carolina Ferreira
