Brazil's currency and stocks weakened on Monday, pressured by high oil prices and an expected interest rate hike Wednesday by the US Federal Reserve. The Bovespa index of the Sao Paulo stock exchange fell 0.9 percent shortly after opening to 23,330.1 points, while the local currency, the real weakened 0.21 percent to 2.827 per US dollar.
The real opened stronger as the dollar hit a record low against the euro, but then changed direction.
Traders expect the Fed to hike rates on Wednesday, a move that would lure capital away from emerging markets like by Brazil by offering higher returns in the United States.
Among domestic factors, four inflation indexes will hit the market this week starting on Tuesday.
All are expected to show price increases are accelerating, a trend that would reinforce expectations of domestic interest rates hikes in the coming months.
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