On the eve of the Federal Reserve (Fed, US Central Bank) decision on interest rates in the United States, the dollar fell for the second day in a row. The stock market started the day on a high, but ended on a low, driven by the fall in US stocks and profit taking, when investors sell shares to pocket recent profits.
The commercial dollar ended this Tuesday (26) sold at R$ 5.349, with a decrease of R$ 0.021 (-0.38%). The price had a volatile day, alternating highs and lows throughout the session, but firmed the downward trend towards the end of trading.
With today’s performance, the dollar accumulates a high of 2.18% in July and a fall of 4.07% in 2022.
The day was also one of volatility in the stock market. The B3 Ibovespa index closed the day at 99,772 points, down 0.5%. Yesterday (25), the indicator had closed above 100 thousand points for the first time in three weeks, which encouraged investors to sell shares to pocket gains after the highs of the last few days. Of the last eight trading sessions, the stock market only dropped today and last Friday (24).
The global financial market is waiting for the Fed meeting, which started today and ends tomorrow (27). The Central Bank of the United States is expected to increase the basic interest rate by 0.75 percentage point to contain inflation, which is at the highest level in the last 41 years in the country.
The expectation that the US economy will enter a recession has led the dollar to fall in recent days. That’s because investors have come to believe that the Fed will start cutting interest rates in 2023, which would push down the US currency price in the futures market. On the other hand, the expectation of recession in the United States has pushed US stock markets down, which is reflected in stock exchanges around the world.
*With information from Reuters
