The dollar has an adjustment period after the previous day’s jump and is trading at R $ 5.02

Marcello Castle Jr. / Agencia Brasil

After jumping 2.6% in the first trading session of the month, the dollar fell 0.94% against the real

Investor attention is focused on monetary policy decisions scheduled for Wednesday (4) in Brazil and the United States, with the market operating as a waiting compass this Tuesday (3).

After hitting 2.6% in the first trading session of the month, the dollar traded down 0.94% against the dollar at 11:10 am, quoting the $ 5.024 sale.

The move by BC (Central Bank) in the forex market contributes to the movement observed today. This Tuesday morning, BC sold $ US1 billion in an extraordinary auction of 20,000 traditional foreign exchange swap deals. All contracts awarded have been sold, with 18,050 maturing on December 1, 2022 and 1,950 on April 3, 2023.

This is the monetary authority’s third extraordinary move in the last two weeks amid rising real currency against the US currency. On April 22, BC sold US $ 571 million in the exchange spot market, when the dollar rose 4.04%, and four days later, added another US $ 500 million to the auction of 10,000 exchange swap deals after the currency touched down. Priced at R $ 5.

When BC issues a swap contract, it is equivalent to selling dollars in the futures market. In this way, the monetary authority seeks to ensure that the supply is there to meet the increasing demand for foreign currency. In addition, this demand seeks to prevent prices from rising and fluctuations in the exchange rate.

“We believe that heating action has limited efficacy for real value devaluation, as it is a global trend of dollar devaluation,” XP analysts evaluated in the report.

The stock exchange’s Ibovespa stock index traded down 1.15% on the previous day, with modest gains up 0.23% at 106,880 points.

Here, investors expect monetary policy decisions in Brazil and the United States.

By the end of this Wednesday’s Copom (Monetary Policy Committee) meeting in BC, the majority of the market anticipates a 1 percent increase in the celiac rate to 12.75% per year.

In the United States, market agents are betting on a 0.50 percentage point rise, taking the original US interest rate to 1% a year.

Abroad, the main American stock indexes operate without a clear trend. The S&P 500 was flat and the Dow was down 0.26%, while the Nasdaq gained 0.15%.

According to Rachel De Saw, head of economics at Rico, as noted in the past few weeks, the risk of economic slowdown caused by high inflation and high interest rates globally is putting a heavy burden on investors. The mood ..

Experts say that “these debates overshadow other events and data. This is a case of February’s economic activity and public accounts results released this Monday, showing a slight increase in the Brazilian economy for the month (January following a severe recession) and short-term financial risk.”

Among the positive highlights of the Brazilian Stock Exchange on the day, Localizava shares advanced 3.5%, boosting the company’s net income by 7.3% to R $ 517.4 million in the first quarter.

“Localiza delivered a solid result, in line with market expectations, mainly influenced by the depreciation of its fleet and new car prices, but managed to increase its gross margin by about 1 ppm, showing good management of its assets, even in the micro-macroeconomic environment”, Guide Investmentos Analyst Rodrigo Crespi suggests.

Still on the domestic agenda, IBGE (Brazilian Institute of Geography and Statistics) released industrial production data, a positive change of 0.3% in March compared to February.

The result became closer to financial market projections. Analysts consulted by Bloomberg Agency had expected an average increase of 0.2%.

“Generally, industrial output data at a lower income level is worse and will strengthen our GDP (Gross Domestic Product) scenario by 0.3% in 2022,” says Andre Perfecto, chief economist at Necton.

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