Dollar Down for First Time in Three Days, Closes At R$5.58

RIO DE JANEIRO, BRAZIL – Influenced by positive news from abroad and Brazil, the financial market had a quiet Thursday, October 8th. The dollar dropped for the first time in three days. The stock market rose sharply, helped by bank stocks.

The commercial dollar closed the day sold at R$5,589, down R$0,035 (-0,62 percent). The currency began the day high, reaching R$5,64 at around 10 AM. However, along the session, the price dropped until closing at around the minimum of the day.

In the stock market, the IBOVESPA index for the B3 Exchange, closed Thursday at 97,920 points, up 2.51 percent. The indicator traded up all day long, helped by bank stocks, which recorded a sharp appreciation.

In foreign news, comments by US President Donald Trump pointed to a potential return to negotiations of a new incentive package for the world’s largest economy, impacted by the Covid-19 pandemic.

On Wednesday, October 7th, Trump called for the passage of legislation and aid measures for airlines until the US Congress resumed discussions on the package after the November elections.

Nancy Pelosi, the Speaker of the US House of Representatives, said the proposed incentives for airlines are a matter of national security and can only be passed in Congress with assurances that lawmakers will work on a more comprehensive aid package.

In Brazil, the trade reaction in September contributed to encourage the market. According to the Monthly Trade Survey of the Brazilian Institute of Geography and Statistics (IBGE), last month the retail sector recorded the highest sales volume since official records began. The indicator reinforces the Brazilian economy’s perceived rebound.

Source: Agência Brasil