Stock exchange and dollar remain stable as investors wait for Fed meeting

SÃO PAULO, SP (FOLHAPRESS)

The Brazilian stock exchange fluctuated and the dollar registered a slight drop against the real and other currencies, with markets awaiting the Federal Reserve’s (American central bank) monetary policy decision, scheduled for Wednesday (1st).

“All attention will be focused on the Federal Open Market Committee (Fomc) meeting, where borrowing costs are expected to remain stable. Investors will closely monitor the president’s comments [do Fed, Jerome] Powell looking for clues on the schedule and frequency of interest rate cuts planned for this year, especially given persistent inflationary pressures”, says the Guide Investimentos team.

An American employment report scheduled for release on Friday (3) is also awaited by the market.

At 10:25 am, the Ibovespa had a positive fluctuation of 0.06%, practically stable at 126,608 points, while the dollar fell 0.13%, quoted at R$5.108.

The Japanese yen surged sharply against the dollar on Monday, with traders citing a heavy dollar-selling intervention by Japanese banks for the first time in 18 months, after the yen hit new 34-year lows earlier in the year. day.

The dollar fell sharply and suddenly to 155.01 yen earlier, coming off a peak of 160.245. Banking sources said Japanese banks had sold dollars for yen.

“With this intervention and the consequent strengthening of the yen, the dollar index weakened in the international market. As a result, there is a global weakening trend for the dollar, accompanied by a slight reduction in treasury yield rates. [títulos do Tesouro americano]which helps the appetite for risky assets and helps the appreciation of other currencies against the American currency”, said Leonel Oliveira Mattos, market intelligence analyst at StoneX.

On Friday (26), the dollar registered a drop of 0.93% and closed the session at R$5.115, following the release of new inflation data in the United States, which came in line with market expectations. Ibovespa registered a strong increase of 1.50%, ending the day at 126,526 points.

According to the Department of Commerce, the PCE price index, the one most followed by the Fed in its interest rate decisions, rose 0.3% last month. February data has not been revised and shows a 0.3% increase in PCE.

In the 12 months to March, inflation increased 2.7%, after rising 2.5% in February. Economists consulted by Reuters predicted that the index would rise 0.3% in the month and 2.6% on an annual basis.

In Brazil, inflation measured by the IPCA-15 (Extended National Consumer Price Index 15) lost strength in April and slowed to 0.21%, after reaching 0.36% in March, according to data released this Friday by the IBGE (Institute Brazilian Geography and Statistics).

The number came below the market projection, which expected an increase of 0.29%, according to estimates collected by Bloomberg.

The new data closed a week of recovery in the Brazilian market: compared to the end of the previous week, the American currency depreciated by 1.61% against the real, while the Ibovespa gained 1.12%.