Lows are related to the decisions of the United States and Brazil on interest rates
The dollar hit this Thursday (29) the lowest level in 20 months, closing at R$ 5.19 – lowest until then had been in May 2024, when it registered R$ 5.1539 on May 28, 2024.
The drop comes two days after the North American currency reached R$5.20, on Tuesday (27) and Wednesday (28). The Ibovespa, which has already registered 8 increases this year, and in the fourth one exceeds 184 thousand points, fell, driven by the New York Stock Exchange. Despite having renewed the intraday record, at the end of the trading session the Ibovespa fell and appeared with 183,133 points.
The two recorded drops are related to the decisions of the United States and Brazil on interest rates. On Wednesday, the Federal Reserve maintained the rate between 3.50% and 3.75% per year, while the Central Bank of Brazil maintained the Selic at 15% per year.
Maintenance of Selic at 15%
The Central Bank’s Monetary Policy Committee (Copom) unanimously decided to maintain the basic interest rate at 15% for the fifth consecutive meeting, however, it said that it could reduce it in March, at the next meeting.
“The Committee expects, if the expected scenario is confirmed, to begin easing monetary policy at its next meeting, but reinforces that it will maintain the appropriate restriction to ensure the convergence of inflation to the target.”, says the decision.
A still during President Luiz Inácio Lula da Silva’s first term, the Selic was at 15.25% per year. This Wednesday’s decision was already expected.
“The Copom decided to maintain the basic interest rate at 15.00% per year, and understands that this decision is compatible with the strategy of inflation convergence around the target over the relevant horizon”, says the decision from the first meeting of the year.
