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Dollar Closes Below R$4.10 for First Time in More Than a Month

SÃO PAULO, BRAZIL – On a day of optimism in the financial market, the U.S. currency closed at its lowest level in more than a month, and the stock market broke a record.

The Brazilian real will continue to be more expensive against the dollar thanks to concerted market interventions by the central bank.
The Brazilian real will continue to be more expensive against the dollar thanks to concerted market interventions by the central bank. (Photo internet reproduction)

The commercial dollar was sold on Thursday, December 12th, at R$4.089, with a drop of R$0.029 (-0.7 percent). The U.S. currency is at its lowest level since November 6th, when it reached

The currency opened slightly up, but reversed the trend and began to operate at a low level during the morning. The dollar accumulated in December a 3.56 percent value decline.

This week, the Central Bank continued to intervene in the exchange rate, but at a slower pace. Since the beginning of last week, the monetary authority has sold US$ 500 million of international reserves on-demand per day, while two weeks ago there were daily auctions of US$1 billion.

Stock Exchange

In the stock market, the day was marked by gains. The B3 Ibovespa index, the former São Paulo Stock Exchange, closed at 112,199 points, up 1.11 percent.

The financial market had a session of optimism one day after the rating agency Standard & Poor’s announced an upgrade in the outlook for the Brazilian public debt rating, from stable to positive.

The decision indicates that the agency may raise Brazil’s sovereign credit rating in the next two years if the country continues with its agenda of reforms and reduction of public spending.

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