Dollar closes slightly lower with expectations of Federal Reserve data

The commercial dollar closed the first price at the stability level, showing only a slight drop against the Brazilian real, quoted at R$5.115, 0.02% less. The currency comes from a week of lows, but still accumulates, in April, an appreciation of 1.99%.

Ibovespa, the B3 index, started the week with an increase of 0.65%, closing the day at 127,351.79 points. The movements revolved heavily around the retail company Casas Bahiawhich announced a request for extrajudicial recovery to renegotiate a debt of R$4.1 billion with creditors.

The market considered the company’s decision to be correct, which resulted in a 34.19% increase in the corporation’s shares, closing the day at R$7.3 per share.

Other companies that saw strong increases in their shares were Sugar Loaf (PCAR3), with 9.06% appreciation, rising to R$3.01. Then the pharmacist Hypera recorded an increase of 5.36%, ending the day with R$30.08 per paper.

What moved the dollar?

The week starts slowly, with investors operating cautiously, waiting for the announcement of the Federal Reserve’s next fiscal policy, scheduled for next Wednesday (1st). It is worth noting that Brazilian markets will be closed on this day, due to the national holiday.

The expectation is that the central bank of U.S keep the interest rate between 5.25% and 5.5%, thus postponing the start of the cycle of cuts in the American index. Now, investors only foresee a cut in the country’s interest rates, after a series of negative results on US inflation.

There is still a lot of anticipation for the Fed president’s press conference, Jerome Powell, after communicating the economic measures. The BS2 Treasury manager, Felipe Uedahe states, when People’s Mailthat the level of the Brazilian currency will be influenced in the coming days. “I think there is still room for the dollar to give up a little, although it should remain above R$5.00. But everything will depend on Powell’s speech. The market is still waiting for an interest rate cut, but it is not known whether it will come in September or later”he detailed.

read more

Another factor that affected the dollar’s price was the currency sales intervention by Japanese banks to contain an earlier historic low in the yen. The value of the Japanese currency plummeted from 160.245 to 155.01 per dollar.

“With this intervention and the consequent strengthening of the yen, the dollar index weakened in the international market. As a result, there is a trend towards a global weakening of the dollar, accompanied by a slight reduction in the yield rates on Treasuries, which helps the appetite for risky assets and helps the appreciation of other currencies against the American currency”he explained to UOL, Leonel Oliveira Mattosmarket intelligence analyst at StoneX.