Dollar rises with an eye on divided Copom, Treasuries curve and fall in ore

In exchange rates, the 1.65% drop in iron ore in China may be favoring the dollar

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BY Estadao Content

The dollar operates higher this Thursday morning, the 9th, reflecting the smaller cut in the Selic rate by 0.25pp, to 10.50% per year and mainly the fierce score of the meeting (5×4), which in the market’s perception could mean more leniency with inflation ahead on the part of the board appointed by the current administration of Luiz Inácio Lula da Silva. The appreciation of the dollar and the Treasury curve abroad also weighs heavily.

The Minister of Finance, Fernando Haddad, stated this Thursday that he prefers to wait for the minutes of the meeting, which will be published next Tuesday, to comment on the Copom’s decision. “I’ll wait for the minutes, I think the minutes can better clarify what happened. The statement is very synthetic”, he stated upon arriving at the Treasury. Haddad spoke about Copom’s guidance for upcoming meetings, something that he did not include in this statement, for the first time since August last year. “I think the guidance was a really important thing to look at,” he said.

In exchange rates, the 1.65% drop in iron ore in China may be favoring the dollar. Better-than-expected Chinese foreign trade data is in the background. China’s exports rose 1.5% annually, after falling in the previous month. Imports jumped 8.4% in April, much more than expected.

Industrial production grew in 5 of the 15 locations surveyed in March compared to February, according to data from the Monthly Industrial Survey – Regional Physical Production, released by the Brazilian Institute of Geography and Statistics (IBGE). On the global average, national industry grew 0.9% in March compared to February.

Abroad, the Bank of England (BoE) maintained the basic interest rate at 5.25%. The pound and euro retreated against the dollar early on.

At 9:21 am this Thursday, the spot dollar rose 1.35%, to R$5.160. The dollar for June gained 1.43%, at R$5.1695.

Read Also: BC reduces rate of Selic cut with opposition from all of Lula’s nominees

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