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EDITION Nº 002 · BRAZILTHURSDAY, OCTOBER 29, 2026 · 11:53
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RATES & INFLATION29 OCT 2026 · 10:38

Dollar rises with politics in Brazil and GDP and inflation in the US on investors' radar

According to Revista Oeste, the American currency rose on Thursday, the 29th, while investors follow Brazilian politics and US interest and inflation data.

BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 2 MIN

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The dollar rose on the morning of Thursday, the 29th, on a day in which Brazilian investors had two fronts to follow: national politics and the economic agenda of the United States. According to Revista Oeste, the American currency rose and the stock market fluctuated, without the publication informing the value of the exchange rate.

In the political scenario, the same publication records the re-election of Lula (PT) and the defeat of Flávio Bolsonaro (PL) in the second round. Flávio, according to Revista Oeste, traveled to the United States after Alexandre de Moraes (STF) ordered the seizure of his passport.

On the other hand, the Department of Commerce reported that American GDP grew 3.4% in the third quarter, above expectations, according to Times Brasil. The data came out on Thursday along with the inflation numbers, released at 8:30 am ET, according to MarketWatch.

The September PCE index rose 0.5% in the month, seasonally adjusted, and 3.6% in twelve months, according to Times Brasil. The monthly increase was in line with the Dow Jones consensus, and the annual rate came in 0.1 percentage points lower than expected. Even so, American inflation accelerated in September and was above the Fed's target. CNBC recalls that the consensus was 0.5% for the month and 3.7% for the year.

It's this set of data that weighs on the Federal Reserve. CNBC describes the central bank as cautious about interest rates, and MarketWatch recalls that the Fed postponed a hike. According to the same MarketWatch, the numbers released could reinforce the argument for an interest rate hike in December.

What changes for the investor

Higher American interest rates tend to make credit more expensive and reduce appetite for risky assets, which tends to weigh on the Nasdaq and the stock markets of emerging countries, in addition to supporting the dollar against emerging currencies. In Brazil, this effect adds to the political noise. According to those who defend fiscal responsibility, confidence in public accounts is the point that weighs most in this scenario, because any doubt about the direction of the country's finances tends to be charged in interest and exchange rates.

Automatically translated from Portuguese.

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