Brazil: US dollar rose 10.03% in June and has highest monthly rise since March 2020
RIO DE JANEIRO, BRAZIL – Amid fears of an international recession and internal tensions in Brazil, the financial market had the most turbulent month since the beginning of the covid-19 pandemic.
The dollar had the highest monthly rise, and the stock market the worst drop for a month in more than two years.
On Thursday, June 30, the commercial dollar was sold at R$5.235, with a high of R$0.042 (+0.81%).
The North American currency had a day of strong volatility, rising to R$5.27 in early trading, falling to R$5.18 during the afternoon, and rising again near the end of trading.
With today’s performance, the dollar closed June with a high of 10.03%, the highest monthly rise since March 2020, when it had risen 15.92%.
Despite this month’s high, the currency has accumulated a 6.11% retraction in 2022.
The day was also tense in the stock market. The Ibovespa index of the B3 closed at 98,542 points, down 1.08%. The indicator fell 11.5% in June, with the worst monthly performance since March 2020.
The stock market lost 17.88% in the quarter, the biggest drop since the first quarter of 2020.
Both internal and external factors contributed to the turbulence in the financial market on Thursday.
Internationally, the North American stock markets fell sharply today. Wall Street indexes had their worst half-year since 1970.
The global market had an unstable month amid fears that the United States would enter into recession after the Federal Reserve (Fed, the North American Central Bank) increased basic interest rates by 0.75 percentage points at the beginning of the month.
Currently, inflation in the United States is at its highest level since 1981.
In the domestic market, investors are wary about voting on the proposed amendment to the Constitution that increases the Brazil Allowance to R$600, raises the value of the Gas Allowance, and creates benefits for truck drivers and other categories.
Today, the Minister of Economy, Paulo Guedes, approved the creation of an aid for taxi drivers, which will increase the proposal’s impact from R$38.75 billion to R$41.25 billion in this year’s budget.
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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