Expectation on inflation and BC makes the dollar close at R$ 5.177; stock market goes up

The commercial dollar closed today’s session down 0.87%, quoted at R$5.177.

The Ibovespa, the main index of the Brazilian Stock Exchange (B3), which brings together the most traded companies, ended up 0.70%, at 108,836.47 points.

The market is watching

  • in the interview with the president of the Central Bank, Roberto Campos Neto, on “Roda Viva”, on TV Cultura, tonight;
  • in the disclosure of consumer inflation in the United States, scheduled for tomorrow;
  • and at the CMN (National Monetary Council) meeting, one of the most important bodies in the financial system in Brazil, scheduled for next Thursday (16).

Expectation for Campos Neto’s words. The president of Bacen will give an interview to the program Roda Viva, on TV Cultura, which will air from 10 pm, amid friction with the president Lula (PT). Banco Inter said in a note that the market awaits “your comments on Lula’s recent attacks on him and on Bacen”.

Meeting of members of the CMN. The meeting will come after news that the government’s economic team is studying to anticipate a review of the country’s inflation targets and possibly raise the target to be sought by the Central Bank, with rumors that the president of the autarchy, Campos Neto, would accept the change.

Although the country’s official inflation targets are commonly defined at the June meeting of the CMN, nothing prevents the objectives from being changed at this week’s meeting.

Nervous outside. Investors around the world are also waiting for a reading of US inflation, expected for tomorrow, which may offer more clues about the Fed’s monetary tightening trajectory (Federal Reserve, the US Central Bank).

Stronger data could trigger a new round of appreciation of the dollar and, consequently, devaluation of other emerging currencies.”
Victor Candido, Chief Economist at RPS Capital

This is because inflation still under pressure in the US would justify further interest rate hikes by the Fed, which would tend to attract funds to the US fixed income market, increasing the demand for dollars.

The value of the dollar disclosed daily by the press, including the UOL, refers to the commercial dollar (learn more by clicking here). For those who are going to travel and need to buy currency at exchange brokers, the value is much higher.

*With information from Reuters news agency

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