Brazil: US dollar rises to R$5.14 amid concerns about China

The concerns about the slowdown in the Chinese economy and fears of a recession in the United States again weighed on the market on Tuesday, August 16.

After two days below R$5.10, the dollar rose. However, the pressure did not affect the stock market, which obtained the third consecutive high.

The commercial dollar closed Tuesday at R$5.141, with an appreciation of R$0.049 (+0.96%). The quotation operated at a high throughout the session. At the high of the day, around 2:30 PM, it reached R$5.15.

Despite yesterday’s high, the dollar has accumulated a drop of 0.73% in August. In 2022, the retreat reaches 7.8%.

The stock market resisted external pressures. The Ibovespa index of the B3 closed at 113,512 points, up 0.43%.

The indicator alternated between highs and lows but firmed the bullish trend near the end of the session, driven by shares of mining companies, which recovered from the previous day’s fall.

Since August 15, the global financial market has been tense because of the release of economic data proving the slowdown in the Chinese economy.

The Asian country is going through a real estate crisis and is affected by the zero covid policy. The weakness in China’s performance mainly affects countries that export commodities (primary goods with an international quotation), such as Brazil.

The dollar was also pressured by fears of a recession in the United States. Some investors took advantage of the recent falls to buy US-American currency.

In Brazil, the beginning of the electoral campaign also affected market operations, increasing volatility during the session.

With information from Reuters