The dollar followed the technical correction seen in other markets this Wednesday and closed higher against the real, after five consecutive sessions of decline. Investors did not hide their disappointment with the fact that Jerome Powell did not speak about monetary policy today, but they practically ignored the warning from Fed Director Lisa Cook that further interest rate hikes may be necessary in the face of possible economic shocks.
In any case, the market continues to believe that the Fed has ended its monetary tightening cycle and may begin easing in May 2024, after weaker employment data released last week eliminated one of the main risks for American inflation. Here, the market monitors the vote on tax reform in the Senate.
Fiscal risk continues to be the focus of attention, with the worsening of the consolidated public sector result in September. The president of the BC, Roberto Campos Neto, warned today, during an event in New York, that the cost to the government of changing the 2024 fiscal target would be greater than the benefit generated, due to the increase in uncertainty resulting from a review.
The spot dollar closed up 0.66%, at R$4.9071, after fluctuating between R$4.8720 and R$4.9170. At 5:06 pm, the future dollar for December rose 0.76%, to R$4.9195. Abroad, the DXY index rose 0.04%, to 105,583 points. The euro gained 0.04% to $1.0703. And the pound fell 0.15% to US$1.2283.