RIO DE JANEIRO, BRAZIL – The dollar closed above R$5.07 on Monday (2) after yields on U.S. debt abroad rose to the highest level in several years ahead of this week’s Federal Reserve (Fed – U.S. central bank) monetary policy meeting.
The Fed is expected to raise key interest rates by 0.5 percentage points at the end of its two-day meeting on Wednesday (4), which would mean a tougher stance on inflation.
The prospect drove up U.S. government bond yields, with the yield on the 10-year Treasury – the global investment benchmark – above 3% for the first time since December 2018, leading to a rise in the dollar index.
The stock market recorded a decline of 1.15% to close at 106,638.64 points, the lowest level since January 17. The B3 recorded a negative day amid concerns about the Chinese economy, inflation fears, and expectations regarding monetary policy decisions in Brazil and the United States.
With information from Reuter and Agencia Brasil