Dollar rises 1.85%, with Pelosi going to Taiwan and BC meeting

The commercial dollar advanced 1.85% and reached R$ 5,274 this afternoon, at 3:20 pm (Brasilia time). The increase is due to the trip of the Speaker of the United States, Nancy Pelosi, to Taiwan and, consequently, greater tension between the North American country and China.

Chinese officials said the military would not “just watch” the Democrat go to the island — prompting a response from the White House.

“The United States must respect the One China principle, the three Sino-American communiqués and keep Joe Biden’s pledge not to support Taiwan independence,” said Zhao, a spokesperson for the Beijing Foreign Ministry, yesterday. Lijian.

Amid anger from China, four US warships, including an aircraft carrier, were deployed today in waters east of Taiwan in what the US Navy called routine deployments.

Although the main stressor is geopolitical tension, as reported by PagBank’s research team, the Brazilian scenario is also a factor in the rise in the dollar today.

At the national level, investors are on alert for the Central Bank’s Copom (Monetary Policy Committee) meeting, which started today and will have a formal announcement about the new Selic level, the basic interest rate, tomorrow.

Currently, the Selic is at 13.25% per annum and the majority expectation of the financial market is for an increase of 0.50 percentage point in basic interest, to 13.75% per annum.

The Ibovespa, the main index of the Brazilian Stock Exchange (B3), rose 1.06%, to 103,309.12 points, this afternoon.

The dollar value disclosed daily by the press, including the UOL, refers to the commercial dollar. For those who are going to travel and need to buy currency at exchange brokers, the value is much higher.

*With Reuters and Agência Estado

About Abhishek Pratap

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