Dollar opens higher, amid renewed tensions between US and Iran
Understand what makes the price of the dollar rise or fall
The dollar opened this Wednesday's session (10) on a high and had an increase of 0.23% close to 9 am, quoted at R$ 5.1895. Negotiations on Ibovespa, the main index on the Brazilian stock exchange, begin at 10 am.
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▶ After a slight relief the day before, tensions in the Middle East returned to pressure financial markets this Wednesday. In addition to Israel's continued attacks on Lebanon, American President Donald Trump accused Iran of shooting down an American helicopter in the Strait of Hormuz and stated that the United States will respond to the offensive.
Trump also called Iran a "bully of the Middle East" and stated that the country will now have to "pay the price" for not accepting a peace agreement.
Amid growing tensions, oil prices rose again on the international market. Around 8:40 am, a barrel of Brent, an international reference, rose 0.80%, quoted at US$ 92.18. West Texas Intermediate (WTI), from the United States, advanced 1.18%, quoted at US$ 89.24 per barrel.
▶ On the indicator agenda, investors' focus is on the new US inflation data. The American Consumer Price Index (CPI) is seen as one of the Federal Reserve's preferred data points in its interest rate decisions.
The data increases expectations for next week's Super Wednesday, when both the Fed and the Brazilian BC meet to decide on the future of basic interest rates in their respective countries. This will be the first meeting of the American Central Bank with the institution's new president, Kevin Warsh.
See below for more details on the day in the market.
Dollar
a
Accumulated for the week: +0.41%;
Accumulated for the month: +2.68%;
Accumulated for the year: -5.67%.
Ibovespa
Accumulated for the week: -0.46%;
Accumulated for the month: -2.29%;
Accumulated for the year: +5.39%.
New clashes between the USA and Iran increase caution
The escalation of tensions in the Middle East once again worries financial markets this Wednesday. The day before, Trump accused Iran on Tuesday (9) of shooting down an American helicopter near the Strait of Hormuz and stated that the US "will need to respond" to the Iranian attack.
A US military official told the US website Axios that an Iranian drone hit the helicopter, causing it to crash. The investigation into the incident has not yet determined, however, whether the drone attack on the Apache was intentional. (follow the main events)
The American president has been trying to seek a peace agreement in the Middle East and even warned Israel not to resume the war against Iran. On Monday, Trump even said that an agreement would be in the "final phase" and could take another "two or three days".
Trump's speech, however, changed. This Wednesday, the American president called Iran a "bully of the Middle East" and stated that the country will now have to "pay the price" for not accepting a peace agreement.
In a post on the Truth Social network, Trump once again said that the Iranian Armed Forces are destroyed and threatened:
"Iran's Armed Forces are complete chaos. Most of them, like the Navy and the Air Force, don't even exist anymore - they have been completely defeated. Iran just talks and doesn't The bully of the Middle East is DEAD!!! They took too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!"
Shortly after the statement, the US president also gave an interview to the American broadcaster Fox News, where he announced that he was close to ordering new attacks on Iran's power plants and bridges.
Global markets
Amid tensions in the Middle East and awaiting the next European Central Bank (ECB) interest rate meeting, the stock markets European companies operated in decline.
Among the region's main indices, Germany's DAX fell 1.16% at around 9am.
The CAC-40, from France, fell 0.78% and the FTSE 100, from the United Kingdom, had losses of 0.72%.
In Asia, shares in China and Hong Kong closed lower, following a wave of widespread sales in Asian markets. The CSI300 fell 1.1%, while the Hang Seng fell 0.6%.
In Japan, the Nikkei lost 1.89%, while the Kospi, from South Korea, registered a devaluation of 4.52%.
Dollar has soared in recent days
Cris Faga/Dragonfly/Estadão Conteúdo
Source: G1