Brazil: US dollar closes at R$5.16 and is worth more than the euro
Despite the turbulence in the international market, the dollar closed practically stable after touching R$5.20 at the end of the morning.
The highlight was the euro, which became worth less than the US currency for the first time in 20 years.
The stock market also fell, driven by the instability in the United States.
The commercial dollar closed on Monday, August 22, sold at R$5.167, down just 0.03%. The price started the day high, reaching R$5.20 between 11 AM and 12 PM.
As of the early afternoon, the currency slowed down, benefiting from the recovery of commodities (internationally quoted primary goods) and high interest rates in emerging countries.
The commercial euro retreated throughout the day and closed at R$5.138, down 0.98%. Since 2002, when it was created, the currency had not been lower than the dollar.
The euro was affected by the worsening energy crisis in Europe, which brought the threat of recession to the continent. In case of an economic downturn, the European Central Bank would have little leeway to raise interest rates, unlike the Federal Reserve.
In the stock market, the day was also marked by turbulence. The Ibovespa index, from B3, closed at 110.501 points, with a fall of 0.89%. In early trading, the indicator even fell below 110,000 points. However, the inflow of some foreign capital and the disclosure of earnings of retail companies slowed the pace of decline.
This week, the global financial market is under the expectation of Fed Chairman Jerome Powell’s speech on Friday, August 26, at the annual meeting of central bank presidents in Jackson Hole, USA. Investors are waiting for clues about the pace of basic interest rate hikes at the next Fed meeting.
In the minutes of the last meeting, released last week, the Fed said it would keep interest rates high in the United States as long as inflation is high. It has brought doubts about whether the Fed will raise interest rates by 0.5 percentage points or 0.75 percentage points at the next meeting.
Higher rates in advanced economies stimulate the flight of resources from emerging countries like Brazil.
With information from Reuters
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.55%
174,576.80
+1.55%
65,522.56
-0.38%
11,450.75
-0.76%
3,009,029
+0.46%
2,508.47
-0.09%
60,117.56
+0.55%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,576.80 | +1.55% | +21.85% | 171,906.72 | 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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