Dollar rises more than 1%, reflecting Copom

The dollar rising more than 1%. This reflects a certain fear in the market that after the departure of the president of the Central Bank (BC), Roberto Campos Neto, the Monetary Policy Committee (Copom) will take a more dovish stance (less prone to increasing interest rates).

Yesterday the committee cut 0.25 percentage points (pp) from the Selic (basic interest rate), which fell to 10.5%.

According to Ajax Asset, “Outside, stocks are retreating, while interest rates on Treasury Bonds are rising and the dollar is rising slightly. Here, dissent in the Copom, formed by directors nominated by Lula, may signal that the BC after Roberto Campos may be less committed to the goal. The minutes will be important to show the reasons for this dissent. The exchange rate could come under upward pressure due to the risk of a more dovish Central Bank.”

At around 9:24 am (Brasília time), the dollar was up 1.17%, quoted at R$5.1504 for sale. In the futures market, the North American currency contract expiring in June 2024 advanced 1.25%, quoted at R$5,160.50.

_{Paulo Holland / Safras News}

_{Image: Unsplash}