Brazil: US dollar nears R$5.30 on UK tensions
The dollar rose sharply and approached R$5.30.
The stock market had the third consecutive fall and closed below 115,000 points, due to a series of international factors, mainly in the United Kingdom, tumultuous the financial market on the eve of the October 12 Brazilian national holiday.
On Tuesday, October 11, the commercial dollar closed selling at R$5.272, up R$ 0.082 (+1.57%).
The quotation operated most of the day at around R$5.20, but accelerated after the president of the British Central Bank, Andrew Bailey, informed that he intends to end the program of buying public bonds in the United Kingdom on Friday, October 14.
The statement also weighed on the stock market. The Ibovespa index of the B3 closed at 114.827 points, down 0.96%.
During the afternoon, the indicator had recovered and was operating at a slight low, but plummeted after the British Central Bank announcement.
The termination of monetary stimulus in the UK caused stress in the global financial market.
The indication that the British monetary authority intends to toughen the fight against inflation brought fears that pension funds will not be able to honor their commitments and will cause a cascading effect on funds in other developed countries.
The fear of global turbulence in the financial market has reinforced expectations that the Federal Reserve (Fed) will keep interest rates high for longer.
Higher interest rates in advanced economies stimulate the flight of resources from emerging countries, such as Brazil.
At the same time, the heightened tensions in Eastern Europe weighed on the financial market, with Russia again bombing several Ukrainian cities.
The attacks occurred in retaliation to the partial destruction of a bridge in Crimea last weekend.
Oil barrel prices have fallen again on fears of a global recession.
On October 11, the International Monetary Fund (IMF) updated its forecasts and announced that one-third of the countries are expected to go into recession in 2023, with Germany, Italy, and Russia standing out.
According to the IMF, the United States, the European Union, and China are expected to face stagnation next year.
With information from Reuters
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Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
+0.30%
175,664.62
+0.30%
65,561.46
-0.41%
11,445.90
-0.22%
2,979,472
-0.72%
2,457.87
-1.28%
60,779.49
-1.40%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 175,664.62 | +0.30% | +21.85% | 175,135.41 | 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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