Dollar closes higher after US central bank signals interest rate hike soon | Economy

The dollar closed up 0.14%, quoted at R$5.4421, this Wednesday (26), after the Federal Reserve, the central bank of the United States, decided to keep interest rates unchanged between 0% and 0.25%, but signal that it should increase them “soon”.

Comments made by Federal Reserve Chairman Jerome Powell regarding the path of monetary policy in the coming months were understood more harshly than expected and scared investors around the world in the final stretch of the Brazilian currency market trading session.

Thus, after operating in a light to moderate low during the afternoon, even after the release of the American BC statement, the dollar ended up reversing the signal in the final minutes of trading.

As a result, the US currency accumulates a fall of 2.38% in the month and in the year. See more quotes.

This Wednesday (26), the Federal Reserve (US central bank) kept the country’s interest rates unchanged in the range between 0% and 0.25%.

The Fed signaled, however, that it should raise interest rates in March and reaffirmed plans to end its bond purchases in the same month before launching a significant write-down on its assets.

The combined decisions will complete a shift from the flexible monetary policy that defined the pandemic era towards a more urgent fight against inflation.

“With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target for the federal funds rate,” the Federal Open Market Committee (FOMC) said. , in a statement.

Investors also monitored the news surrounding tensions in Ukraine, which have the potential to “price a risk-averse move” throughout the session, Netto said.

In Brazil, this morning’s data showed that the Extended National Consumer Price Index-15 (IPCA-15), considered the preview of official inflation, rose 0.58% in January, up from 0.78% in the previous month. A Reuters poll of economists estimated a rise of 0.43% for the period.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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