Dollar closes higher with global risk aversion | Economy

The dollar closed higher this Tuesday (2), with an eye on the increase in tensions between the United States and China and awaiting the Central Bank’s decision on the new Brazilian basic interest rate, expected for early Wednesday night. .

The US currency rose 1.95%, sold at R$5.2792. See more quotes.

On Monday, the dollar closed up 0.06%, at R$5.1776. With the result of this Tuesday, it started to accumulate high of 2.03% in the month. In 2022, it has a devaluation of 5.30%.

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What is messing with the markets?

Markets in general echoed the attentions involving China and the US, with the Speaker of the US House of Representatives, Nancy Pelosi, visiting Taiwan, a self-governing island claimed by Beijing, which issued warnings to Washington.

With Pelosi’s visit, China’s government spoke of a ‘severe infringement’ of its sovereignty and announced military actions. The Chinese government said its warplanes had flown over the line dividing the Taiwan Strait.

In the local scenario, the Brazilian Institute of Geography and Statistics (IBGE) earlier released the Monthly Industrial Survey, which showed that the sector retreated again in June, with a drop of 0.4% in relation to the previous month.

The Monetary Policy Committee (Copom) meets this Tuesday and Wednesday to define the basic interest rate, which today is 13.25% per year. The financial market predicts a rise of 0.5 percentage point, but is divided on the end of the Selic high cycle at this meeting.

According to the Central Bank’s Focus survey, analysts at financial institutions reduced the inflation estimate for 2022 from 7.30% to 7.15% – the fifth consecutive drop of the indicator.

The projection for the exchange rate for the end of 2022 remained at BRL 5.20. For 2023, it was also stable at R$ 5.20. The forecast of bank economists is that the Brazilian economy will grow 1.97% in 2022, against 1.93% previously predicted. For 2023, the high forecast went from 0.49% to 0.40%.

Focus Bulletin: Inflation projection this year drops to 7.15%

Focus Bulletin: Inflation projection this year drops to 7.15%

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