Result represents a negative balance in comparison with the Brazilian currency; Ibovespa falls for the second day in a row
After reaching its lowest value in 20 months, the dollar rose again this Friday (30) and closed the R$ 5,24. Despite the rise on the day, the North American currency accumulated a drop of more than 4% in the week, which represents a negative balance in comparison with the Brazilian currency.
On Thursday (29), — the lowest value until then had been recorded in May 2024, when it was R$5.1539. On Tuesday and Wednesday, the dollar closed at R$5.20.
The appreciation of the currency occurs on the same day that the President of the United States, Donald Trump, announced the new president of the Fed (Federal Reserve, the American central bank). . He will replace Jerome Powell — Trump’s enemy —, whose term at the head of the Fed expires in May.
Ibovespa retreats
For the second day in a row, the Brazilian stock market, which had been renewing records, fell. Ibovespa closed at the 180 thousand pointsaccording to the trading session at 5:38 pm. The result coincides with the release of labor market data: in the quarter ending in December, .
The data was released this Friday (30) by the Brazilian Institute of Geography and Statistics (IBGE). In the previous session, the index had closed at 183 thousand points, despite having reached 185 thousand during the day.
At the annual rate, Brazil registered the following contingents:
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Private sector employees without a formal contract: 13.8 million (down 0.8% compared to 2024);
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Domestic workers: 5.7 million (down 4.4%);
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Self employed: 26.1 million (the highest level in the historical series).
Year-to-date, the Ibovespa, which has already registered eight increases and on Wednesday (28) exceeded 184 thousand points, retreated today, driven by the New York stock exchanges. The two recent drops are related to interest rate decisions in the USA and Brazil. On Wednesday, the Fed kept the rate between 3,50% e 3,75% per year, while the Central Bank of Brazil maintained the Selic at 15% per year.
Who is the new Fed chairman?
Warsh, 55 years old, was a member of the Fed’s Board of Directors between 2006 and 2011. The Board is the main body of the US monetary authority, and all of its members participate in the Fomc, the committee that sets interest rates in the country.
With a degree in Public Policy from Stanford University and a degree in Law from Harvard University, Warsh also took courses on financial and debt markets at MIT. In the private sector, he worked for Morgan Stanley between 1995 and 2002.
In politics, he was an economic advisor to George W. Bush before joining the Fed, where he helped with the financial rescue of banks after the 2008 crisis. Later, he was part of the transition team for Donald Trump’s first term.
