The dollar lost ground against the real on Wednesday morning (27), with investors around the world working on standby ahead of the monetary policy decision of the US central bank, the Fed (Federal Reserve), which should promote a further increase of 0.75 percentage point in its basic interest rate.
At 9:08 am (GMT), the spot dollar retreated 0.27%, to R$ 5.3371 on sale.
On B3, at 9:08 am (GMT), the first-maturity dollar futures contract fell 0.34% to R$5.3400.
The spot dollar closed the last session down 0.38%, at 5.3518 reais, the lowest value for a close since July 8 (R$ 5.269).
This Tuesday (26), there was an appreciation of the real due to the strength of commodities due to better expectations about China. This dampened pressures related to expectations of higher interest rates in the US.
Despite the appreciation of the Brazilian currency, the Stock Exchange closed down, without the strength to sustain itself above 100 thousand points, contaminated by the decline in Wall Street.
Reference index of the Brazilian stock market, the Ibovespa fell 0.50%, to 99,771 points.
Iron ore, one of the main components of Brazil’s export basket and which has China as its main destination, hit a maximum in two weeks.
The Asian country has produced more encouraging news in recent days in the economic field, fueling expectations of increased demand for basic products exported by Brazil.
Other currencies were also losing ground, on the eve of the Fed’s interest rate decision. The expectation is for a new high of 0.75 percentage point this Wednesday (27).
The expected hike in US interest rates will match the increase applied by the US monetary authority in June, the highest in nearly 30 years.
Higher interest rates in the US increase the attractiveness of US fixed income, encouraging the conversion of foreign currencies to the dollar, which increases its value.
In New York, the benchmark S&P 500 index fell 1.15%. Large stocks tracked by the Dow Jones retreated 0.75%. The Nasdaq indicator lost 1.87%.
U.S. stocks closed sharply lower on Tuesday after a profit warning from Walmart sent retail stocks down and fueled fears about consumer spending.
Walmart shares plunged after the retailer cut its full-year profit forecast on Monday. Walmart blamed rising food and fuel prices and said it needed to cut prices to reduce inventories.
The process of raising interest rates is precisely adopted by the main world economies in an attempt to slow down the inflation that has spread across the globe with the breakdown of supply chains during the pandemic.
Last week, the ECB (European Central Bank) raised the basic interest rate in the region by 0.50 percentage point, the first increase since 2011.
with Reuters
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