Dollar falls 0.35% and hits R$4.95; interest rate cut in the US is scheduled for June

Market closes for Carnival and only reopens on Wednesday – Credit: Canva

The spot dollar closed this Friday (1st) with a drop of 0.35%, being quoted at R$4.95. After another week, the US currency accumulated 0.78% in loss of its value.

Ibovespa, the largest index in the Brazilian market, after the announcement of the 2.9% growth in the Brazilian Gross Domestic Product (GDP), closed up 0.12%. However, when considering the week, there was a decrease of 0.18%.

The fall in the dollar was due to data from the purchasing managers index (PMI) from the Institute for Supply Management (ISM), which fell from 49.1 to 47.8 points, contradicting expectations for an increase.

The American GDP was also affected. According to the Federal Reserve of Atlantathe index’s growth projection fell from 3% to 2.1%. “The tendency is to see increasingly weaker growth in U.Sbecause interest [altos] it takes time to affect the economy.”explained Fabrizio Vellonichief economist at Frente Corretora.

“But I believe that the Fed will only make room for a rate cut when it is clear that this is happening and that there will not be another spike in inflation”, he completed. The Brazilian Institute of Geography and Statistics (IBGE) announced that the Brazilian economy advanced 2.9% in 2023.