Dollar reaches 5 reais after U.S. inflation data
RIO DE JANEIRO, BRAZIL – In another day of nervousness in the international market, the dollar rose substantially and leaned against R$ 5. The stock market fell to its lowest level in a month and ended the week with losses of more than 5%.
The commercial dollar closed at R$ 4.986 on Friday (10th), up R$ 0.073 (+1.49%). The price moved in the upper range throughout the day, reaching a high of R$5.01 around 11:30 am.
The North American currency reached the highest level since May 16, when it closed at R$5.052. This week alone, the dollar rose by 4.39%. The currency reached a high of 4.9% in June but fell 10.58% in 2022.
The stock market also had a rough day. The Ibovespa index B3 closed at 105,481 points, down 1.51%. The indicator has been at its lowest level since May 11. This week, the index fell 5.06%, reaching the most significant weekly low since October last year.
After the release of inflation data from the United States, the dollar rose, and stock markets fell worldwide. The U.S. consumer price index reached 1% in May. In 12 months, the indicator reaches 8.6%, the highest level since 1981, due to fuel prices against the backdrop of the war between Russia and Ukraine.
Higher prices in the United States reinforce the expectation that the Federal Reserve (Fed, the U.S. central bank) will tighten its interest rate policy. Higher interest rates in advanced economies encourage the outflow of resources from emerging economies like Brazil.
U.S. stock markets also fell sharply on Friday. The Dow Jones industrials index fell 2.73%. The Nasdaq of technology companies fell 3.52%. The S&P 500, including the 500 largest companies, fell 2.91%. When stock markets in developed countries fall, investors pull funds out of Brazil to cover losses abroad.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.56%
187,206.89
-0.56%
63,924.77
-0.28%
11,220.60
-0.16%
3,098,898
-1.87%
2,589.69
-1.41%
59,373.28
-0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 187,206.89 | -0.56% | +21.85% | 188,268.59 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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