Dollar rises and should end the week sharply higher

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The dollar rose against the real on Friday (19), in line with a jump in the US currency abroad amid widespread economic fears, and was on its way to a strong weekly high.

At 9:07 am (GMT), the spot dollar advanced 0.55%, at R$ 5.2000 on sale.

On B3, at 9:07 am (GMT), the first-maturity dollar futures contract rose 0.53% to R$5.2175.

On Thursday (18), the markets closed the day close to stability. The commercial dollar rose 0.07%, quoted at R$5.1710. On the Brazilian Stock Exchange, the Ibovespa index rose 0.09% to 113,812 points.

Investors continued digesting throughout the day the minutes of the last monetary policy meeting of the Fed (Federal Reserve, the central bank of the United States), released on Wednesday (17).

In the absence of news with great potential for impact, investors turned their attention to statements by US monetary policymakers.

James Bullard, chairman of the St. Louis, said he was leaning towards a new 0.75 percentage point hike in US benchmark rates in September.

Increases of 0.75 percentage point were applied at the last two meetings of the US central bank’s money committee.

Reinforcing a firm stance on fighting inflation, Esther George, president of the Kansas City Fed, called the expectation that surrounded the markets that there would be a reduction in monetary tightening after signs that the rise in prices could have reached its peak.

Inflation accumulated in the 12 months through July in the US is 8.5%. Despite remaining close to its highest level in 40 years, the consumer price index slowed last month. In June, the increase was 9.1%.

US Labor Department data released on Thursday showed that the number of Americans filing new claims for unemployment benefits dropped last week.

The generation of job vacancies is one of the indicators that the economy remains heated and, therefore, that prices will continue to rise.

with Reuters

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