The dollar is trading slightly higher and the markets await announcements from the Fed

The dollar traded slightly higher this Wednesday, on a day marked globally by the meeting of the US Federal Reserve (Fed) that will announce a new rise in interest rates. In the local market, the US currency was trading this midday at $40.12, just above the value of $40.04, which was the wholesale average on Tuesday.

For its part, on the BROU public board, the dollar was offered at $38.85 for purchase and $41.25 for sale.

At the regional level, in Brazil, the dollar traded with a minimum rise of 0.01%, at 5.117 reais per unit. This Wednesday is expected that the Central Bank of that country raise its interest rate by 0.5 percentage points to 13.25%, in a scenario where inflation moderated but persists.

At a global level, the Dollar Index that measures the value of the US dollar in relation to a basket of foreign currencies fell 0.19% to 105.31 units.

Wall Street tries to recover

The New York Stock Exchange was attempting a rebound on Wednesday after two days of losses, pending a historic decision by the Fed, which will drastically increase interest rates to curb runaway inflation. Markets anticipate a 0.75 percentage point increase in rates.

The Dow Jones index rose 0.37 % and the S&P 500 at 0.73%, while the Nasdaq did 1.40%.

After a black Monday, the Dow Jones index fell again this Tuesday by 0.50% to 30,364.83 points and the S&P 500 by 0.38% to 3,735.48 points.

The Nasdaq, with a strong technological coloration, registered a slight recovery, gaining 0.18% to 10,828.35 points.

The Fed’s Monetary Committee will make a decision which will be followed by a highly anticipated press conference by Central Bank President Jerome Powell. The monetary institution will also release new economic forecasts.

Yields on 10-year US government bonds moderated slightly but remained near their highest since 2011 at 3.37%, down from 3.47% the day before. The dollar was stabilizing after rising to a 20-year high on Tuesday.

The Observer and AFP

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