The one-day interbank deposit futures rates (DI rates) in Brazil ended slightly higher Monday, tracking the locally traded U.S. dollar amid thin trading volume. Investors took a more defensive stance waiting for events such as the monetary policy decisions of the Federal Reserve and the Brazilian Central Bank’s Monetary Policy Committee this week.
According to Guide Investimentos’ economist Ignacio Crespo, central bank decisions can alter recent market dynamics.
“In the last few weeks, the environment has been more positive for risky assets,” the economist said. “The greenback is going in a less clear direction, stabilizing in the last two months. But until when?”
Crespo points out that the scenario can be applied to interest rates, which track the movement of the foreign currency and come in a dynamics of return of premiums after the strong highs between May and June. But it is not known until when this will last as well, said the economist.
The January 2019 DI contract rate closed at 6.625%, from 6.62% in the previous settlement, while the January 2020 DI rate was at 7.91%, from 7.89%. The January 2021 DI contract rate settled at 8.90%, from 8.88%.