The dollar falls to R$ 5.37 on signs of lower interest rate hikes in the US

A note that the US Federal Reserve may cut interest rate hikes in the US sent the dollar slightly lower after yesterday’s high (22). The stock market retreated for the second time in a row, hit by volatility in financial markets.

The trading dollar today traded at R$5.374, down 0.1% on Wednesday (23). The quote was a swinging day and throughout the session, it crossed R$ 5.40 throughout the day. The lower consolidation came after the release of the minutes of the Federal Reserve meeting earlier in the month, in which several directors indicated that interest rate hikes should be reduced from now on.

With today’s performance, the US currency is rallying to a November high of 4.03%. In 2022, the currency retreats by 3.62%.

The stock market had another day marked by volatility. The B3 Ibovespa index closed down 0.18% at 108,841 points. Despite a rally in US stock markets due to the central bank’s signal, the index was again influenced by political uncertainty and negotiations on the proposed constitutional amendment (PEC) of change. Next 4 years.

At the end of the afternoon, the rapporteur of the 2023 budget report, Senator Marcelo Castro (MDB-PI), said that the delivery of the final version of the transition PEC was postponed due to the lack of consensus. The elected government wants to withdraw BRL 175 billion to keep it at BRL 600 and pay an additional BRL 150 to families with children under 6 years of age. Castro said Congress wants to reduce its impact to R$100 billion over the next 2 years.

* With information from Reuters