September 28, 2022
Dollar closes higher but loses strength after minutes of US Fed

Dollar closes higher but loses strength after minutes of US Fed

The US currency gained 0.53% to trade at R$5.1674. Earlier, it reached R$ 5.2133.

Photo: Marcelo Casal Jr/Agência Brasil

The US currency gained 0.53% to trade at R$5.1674. Earlier, it reached R$ 5.2133. (Photo: Marcelo Casal Jr/Agência Brasil)

The dollar closed higher on Wednesday (17) but lost strength in the afternoon after the release of Federal Reserve (Fed, USA’s BC) minutes that brought clues about the direction of North American interest rates. . The US currency gained 0.53% to trade at R$5.1674. Earlier, it reached R$ 5.2133.

On Tuesday, the dollar rose 0.95% to R$5.14. With today’s result, it started accumulating a 0.13% indent on the month. For the year, it has depreciated by 7.31% against the real value.

Markets assess the minutes of the Federal Reserve meeting released earlier. The document did not indicate a clear trend among Fed members for a small increase of 0.50 percentage points or a third consecutive increase of 0.75 points at the next meeting on September 20 and 21, but reaffirmed the behavior of inflation and the economy in general. will determine the outcome.

US inflation declines

Data from the central bank’s last meeting showed annual consumer inflation fell to 8.5% in July from 9.1% a month earlier, leading most investors to expect a 0.5-point hike in interest rates next month.

In Europe, eurozone gross domestic product (GDP) growth was revised down from 0.7% to 0.6% in the second quarter compared to the first 3 months of the year. Here, the focus is on the beginning of the election campaign and the first polls for voting.

On the economic agenda, data from the Fundação Getulio Vargas (FGV) showed this Wednesday that the General Price Index-10 (IGP-10) fell 0.69% this month, the first deflation since the end of last year, reflecting a drop in commodity prices. and reduction of ICMS in power and fuel sectors.