Dollar rises to R$5,279 with tension between US and China and BC meeting

The commercial dollar closed today with an appreciation of 1.94%, quoted at R$ 5.279. The foreign currency closed with the highest daily percentage increase since July 11 (1.96%). The increase is due to the growing geopolitical tension between the United States and China and also to the beginning of the Central Bank’s Copom (Monetary Policy Committee) meeting.

With the departure of US House Speaker Nancy Pelosi to Taiwan, China made threats again, which were responded to by the other side. 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.

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

At the national level, investors are on alert for the Central Bank’s Copom (Monetary Policy Committee) meeting, which began this afternoon 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.

In addition, analysts say that the Brazilian currency is approaching a more delicate period and may face difficulties for a more consistent appreciation.

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.

Stock market is also up

The Ibovespa, the main index of the Brazilian Stock Exchange (B3), also closed up, this time at 1.11% and at 103,361.70 points.

While the market awaits the decision of the Central Bank, the shares Locaweb (LWSA3), Hapvida (HAPV3) and Vale (VALE3) were the most valued of the day, helping the stock market climb.

*With Reuters and Agência Estado

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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