Brazil: US dollar rises to R$5.43, stock market falls to lowest level since 2020
RIO DE JANEIRO, BRAZIL – Influenced by the international scenario and the approval of the constitutional amendment that expands social benefits, the financial market had another day of nervousness on Thursday, July 14.
The dollar came close to R$5.50, but the high lost strength throughout the day. The stock market fell again and reached its lowest level since 2020.
The commercial dollar closed the day sold at R$5.433, up R$0.027 (+0.51%). The US currency had a tense day, trading at R$ 5.48 at the day’s maximum around 10:30 AM.
However, the price slowed down after statements by directors of the Federal Reserve (Fed, the US central bank) that cooled the market.
The stock market had an even more turbulent Thursday. The Ibovespa index, from B3, closed at 96,121 points, with a retreat of 1.8%. The indicator closed at the lowest level the week before Joe Biden’s victory in the US elections.
Both external and internal factors interfered in the financial market. In the United States, bets increased that after annual inflation reached 9.1% in June (the highest level in 41 years), the Fed will raise basic interest rates by one percentage point at the next meeting.
Higher rates in advanced economies provoke a flight of resources from emerging countries like Brazil.
Tempers only calmed down during the afternoon, when two Fed directors indicated that they intend to raise the basic US American interest rates by 0.75 percentage points at the end of this month.
The dollar decreased its appreciation against the main international currencies.
In Brazil, investors reflected the approval of the constitutional amendment that increases social benefits and creates temporary aid for taxi and truck drivers.
With an impact of R$41.3 billion on the Union Budget from August to December, the text was enacted by the National Congress earlier this evening.
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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