Follow the dollar rate on interest rate definition day

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The dollar had a slight drop against the real this Wednesday (1st), starting February with a negative bias even after having already retreated sharply in the previous month, with investors awaiting the monetary policy decisions of the central banks of the United States and Brazil.

At 9:06 am (Brasília time), the spot dollar retreated 0.37%, to R$ 5.0574 in the sale.

On B3, at 9:06 am (Brasília time), the first contract dollar futures contract fell 0.39%, to R$ 5.0805.

This Tuesday (31), the American currency closed down 0.75% against the real, to R$ 5.076, after data showing the deceleration of labor costs in the United States. The news reinforces the expectation that the Federal Reserve (American BC) will increase 0.25 percentage points in the interest rate to control inflation. It will be the smallest readjustment in ten months.

In January, the American currency accumulated a drop of 3.82%, after two consecutive months of increases. The appreciation of the real in the period reflects the reopening of China, which made emerging currencies more attractive, and the higher interest rates paid by Brazil than by developed countries.

The decisions of the Central Bank of Brazil and the Federal Reserve on interest rates will guide the financial market this “super Wednesday”. Investors expect stock market fluctuations throughout the day.

The Exchange closed at 113,691.16 points, recovering part of the 1.63% fall recorded last Friday (27th) and closing January with an accumulated 3.6%.

Future interest rates followed investor optimism and closed lower. Contracts for 2024 rose from 13.55% per year to 13.54%. When due in 2025, the rate increased from 12.87% to 12.84%. For 2027, interest rates dropped from 12.85% to 12.83%.

Major U.S. stock indexes closed higher on Tuesday, with investors optimistic about the Fed’s aggressive approach to curb inflation.

A benchmark for the New York Stock Exchange, the S&P 500 rose 1.46% to 4,076.60 points. The Nasdaq technology index rose 1.68% to 11,584.55 points. The Dow Jones advanced 1.09% to 34,086.04 points.

With Reuters

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