By Luana Maria Benedito
SAO PAULO (Reuters) – The dollar left the lows of the day and returned to above the 5.60 reais on Wednesday, with investors reacting to US data and paying attention to local news around the PEC dos Precatório.
At 11:49, the dollar operated stable, at 5.6084 reais on sale.
At the peak of the session, the currency rose 0.28%, to 5.6243 reais, after having fallen 0.95%, to 5.5550 reais, in the low reached right after the opening of the markets.
The dollar’s recovery in the domestic market from the lowest levels of the session was in line with the international strengthening of the US currency, whose index against a basket of strong rivals rose 0.32% around 11:50 am.
The index, which had already been on the rise, gained even more strength from 10:30 am, when the US Department of Labor reported that the number of Americans who filed new jobless benefits fell to its lowest level since 1969. last week, pointing to sustained firmness in the world’s largest economy.
There is a perception among investors that signs of improvement in the US labor market – amidst still high inflation in the country – strengthen arguments in favor of accelerating the pace of reduction in the monthly bond purchase program of the US central bank, the Federal Reserve. The end of the billion-dollar stimulus, in turn, is seen as a predecessor to interest rate hikes in the world’s largest economy.
On Wednesday, San Francisco Fed Chair Mary Daly said she would be open to accelerating the pace of slowing bond purchases if inflation remains high and employment remains strong.
There is “marginal change of tone spreading at the Fed”, commented on Twitter Arthur Lula Mota, a member of the strategy and macro team at BTG Pactual, about Daly’s speech, which came in line with recent comments by other central bank officials.
Higher borrowing costs in the US are seen as a push factor for the dollar, as they would increase the yields of US sovereign bonds, drawing funds into the country.
Meanwhile, on the domestic fiscal front, the rapporteur of the PEC dos Precatórios and government leader in the Senate, Fernando Bezerra (MDB-PE), announced that he will promote six changes in the text, including the definition of Auxílio Brasil as a social program with a specific character. permanent valued at 400 reais.
The news did not please all investors, who for months have been worried about the government’s pressure for more spending, but the forecast of permanent aid to the population in the PEC text “would facilitate the approval of the amendment in the Senate”, evaluated Genial Investimentos in note to clients, which would alleviate some fears regarding the trajectory of public accounts.
The investment platform did not rule out, however, “a high degree of uncertainty” in the fiscal scenario, which “should remain at least until the PEC is approved by the Senate”.
(Edited by José de Castro)
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