On Tuesday (11th), Brazil's main stock index, Ibovespa, hit a new record high, rising by 1.81% to reach 158,065 points around 11:30 am. At the same time, the US dollar fell by 0.67% to 5.2712 Brazilian reais.

According to the Brazilian website "G1," investors' attention is primarily focused on the domestic and international market conditions. The minutes of the Brazilian Central Bank's Monetary Policy Committee (Copom) meeting and the October IPCA report have helped investors assess the future direction of monetary policy. Internationally, the market is watching closely to see if the US government can end the shutdown.

The Copom meeting minutes reiterated the Central Bank of Brazil's confidence in keeping the benchmark interest rate (Selic) at 15% to control inflation. The documents suggest that interest rates are expected to remain at the current level for an extended period.

The documents indicate a relatively positive recent inflation scenario, primarily reflecting a stronger exchange rate and declines in commodity and food prices. However, strong demand and resilience in the labor market continue to exert downward pressure on prices.

Additionally, a report from the Brazilian Institute of Geography and Statistics (IBGE) shows that the Consumer Price Index (IPCA) rose by 0.09% in October, a decrease of 0.39 percentage points from September's 0.48%, close to the market expectation of 0.10%. The cumulative inflation rate for the year stands at 3.73%, with a 12-month cumulative inflation rate of 4.68%.

On the international front, the US Senate passed a temporary funding bill that could end the 42-day government shutdown.

This week, the Ibovespa index has accumulated a 0.77% increase, with a 3.82% increase so far this month, and a cumulative increase of 29.08% for the year. Regarding the exchange rate, the US dollar has fallen by 0.55% against the Brazilian real this week, with a 1.36% decrease for the month and a cumulative decrease of 14.12% for the year.

The US dollar has been declining against the Brazilian real since early November, influenced by risk appetite and the interest rate differential between the US and Brazil. Nomad investment expert Bruno Shahini noted, "Statements from Federal Reserve officials indicate that monetary policy remains tight, but the US economy is slowing, exacerbating expectations in the market for a possible gradual continuation of rate cuts."