The dollar closed moderately higher on Tuesday, at R$ 5.18.

THE commercial dollar The exchange rate closed this Tuesday (23) with a moderate increase of 0.88%, quoted at R$ 5.1840. At its highest point of the day, the exchange rate rose to R$ 5.1890; at its lowest, it fell to R$ 5.1600. In this trading session, the market adopted a more defensive stance after the release of the minutes of the last meeting of Monetary Policy Committee (Copom)of Bank Central (BC)The document was received cautiously by investors, who pointed out inconsistencies between the presented diagnosis of inflation and the monetary policy decision announced last week. The minutes detailed the unanimous decision to reduce the Selic rate The Committee raised the inflation rate by 0.25 percentage points to 14.25% per year and sought to justify a more gradual path of monetary easing. Despite this, the prevailing market assessment was that the Committee presented a more concerning outlook for inflation without, however, adopting a proportionally more restrictive stance. The interpretation of some market participants was that the Committee's communication… BC This increased uncertainty about the next steps in monetary policy, raising the volatility of domestic assets. Internationally, the perception that… also weighed on the exchange rate. Federal Reserve (Fed) It may maintain a more conservative stance in the coming months. Investors continue to adjust positions after officials from the US monetary authority signaled the possibility of higher interest rates for an extended period. Attention now turns to the release of… personal consumption expenditures (PCE) price index, scheduled for Thursday (25). The indicator is considered the main measure of inflation monitored by FedOn the radar, oil prices continued to decline amid progress in diplomatic negotiations between the US and Iran. According to Iranian officials, technical discussions with Washington concluded on Tuesday, and working groups have already begun to be formed to address key issues in the negotiations, including the lifting of economic sanctions and the future of the Iranian nuclear program.

This text was translated by machine from Brazilian Portuguese.