The dollar advanced beyond R$5.20 this Thursday (23), with investors waiting for another hearing from Federal Reserve Chair Jerome Powell to the United States Congress, while global fears about possible recession and risks domestic inspectors were on the radar.
Investors will also pay attention to the president of the Central Bank of Brazil, Roberto Campos Neto, who will give a press conference starting at 11 am (GMT) on the conduct of monetary policy, accompanied by the new director of Economic Policy, Diogo Guillen.
At 9:07 am (GMT), the spot dollar advanced 0.54%, at R$ 5.2070 on sale.
On B3, at 9:07 am (GMT), the first-maturity dollar futures contract rose 0.21% to R$5.2200.
The day before, the North American currency in sight rose 0.50%, to R$ 5.1791 on sale.
Fears of a recession in the United States returned to swing world markets this Wednesday (22) after the president of the Fed (Federal Reserve, the American central bank) reinforced the impetus of the monetary authority to curb the highest inflation in the country in 40 years. . Jerome Powell said the Fed is “strongly committed” to quickly achieving that goal.
Powell said the risk of an economic slowdown was “certainly possible” during a Senate banking committee hearing, although he pondered the possibility of a recession.
Analysts took Powell’s remarks as a warning that the Fed could raise its interest rate by between 0.75 and 1 percentage point in August.
Last week, the Fed raised interest rates by 0.75 points, the biggest hike the authority has applied since 1994.
The Brazilian Stock Exchange fell 0.16%, with the Ibovespa closing at 99,522 points. The domestic market followed the fall of the New York Stock Exchange, whose benchmark index, the S&P 500, dropped 0.13%. Dow Jones and Nasdaq, two of the leading indicators of US stocks, lost 0.15% and 0.15%.
The main European stock markets also ended the day lower, with London, Paris and Frankfurt falling 0.88%, 0.81% and 1.11%, in that order.
The reference price of a barrel of crude oil was trading with a devaluation of 4.06% at the beginning of the night of this Wednesday, quoted at US$ 109.99 (R$ 566.48).
Last Friday (17), the barrel of Brent had already fallen 5.58%. In the accumulated this year, however, the raw material still has an appreciation of almost 40%.
High interest rates in the United States signal to the market that consumption in the main economy of the planet could fall severely and spread the recession across the globe. The slowdown reduces the need for energy production and, consequently, the demand for petroleum-derived fuels.
In addition to concerns about the recession, oil prices also plummeted on Wednesday on news of a plan devised by US President Joe Biden to reduce fuel costs for motorists.
with Reuters
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