The dollar closed down on Tuesday (26), as the strength of commodities due to better expectations about China gave breath to the Brazilian currency and cushioned pressures related to high interest rates in the US.
The US currency retreated 0.38%, sold at R$ 5.3492. See more quotes.
The day before, the US currency retreated 2.33%, sold at R$5.3697. With the result of this Tuesday, accumulates high of 2.23% in the month. In the year, it still has a devaluation of 4.05%.
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What is messing with the markets?
The gains took place early in the trading session, and later the currency weakened in the wake of the renewed appreciation of raw materials. 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.
The Federal Reserve’s (US BC) monetary policy meeting is expected to raise interest rates again by at least 0.75 point and signal the US central bank’s next steps to contain inflation. The Fed kicked off its two-day monetary policy meeting on Tuesday. The decision, therefore, will be announced on Wednesday (27).
Many traders question whether slowing growth could lead the Fed to shift its focus away from inflation and signal a slower pace of rate hikes ahead.
In the domestic scenario, the IBGE announced that the Extended National Consumer Price Index 15 (IPCA-15) – considered the preview of the country’s official inflation – stood at 0.13% in July, below the rate of 0.69% recorded in June. This is the smallest change in the indicator since June 2020, when it stood at 0.02%.
Fears about the credibility of Brazil remain on investors’ radar, which was recently shaken by a constitutional amendment that expands and creates a series of social benefits, providing for out-of-ceiling expenditures just a few months away from the presidential elections.