Dollar down to R$5.40, lowest level in 40 days, in expectation of Selic rise
RIO DE JANEIRO, BRAZIL – The commercial dollar closed Thursday, November 11, selling at R$5,404, down R$0,096 (-1.74%).
At the day’s minimum, at around 2:15 PM, the price reached R$5.39. The currency is at its lowest value since October 1, after closing at R$5.369, and saw its largest daily drop since September 9, when it fell 1.85%.
With yesterday’s performance, the currency accumulated a drop of 2.15% in the week and 4.28% in November. In 2021, the dollar is up by 4.14%.
The stock market was also marked by euphoria. The B3’s Ibovespa index closed at 107,595 points, up 1.54%. The indicator reached its highest level since October 25. The stock market is up 2.64% this week and 3.96% in November, but has accumulated a 9.6% drop in the year-to-date.
Without the U.S. market as a reference, the dollar fell based on expectations that the Central Bank (BC) will accelerate the increase in the benchmark SELIC rate in response to the spike in official inflation, which in October reached its highest for the month since 2002. Higher interest rates tend to encourage the inflow of foreign capital into riskier countries, such as Brazil.
Another factor contributing to financial market optimism was the Chamber of Deputies’ approval of the proposed amendment to the Constitution (PEC) that postpones court-ordered debts and changes the spending cap calculation.
Although the measure will increase public spending next year, analysts believe that had the PEC not been approved, the government would have been forced to issue an extraordinary decree of public calamity, which would effectively breach the cap, instead of simply adjusting the formula.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.51%
171,906.72
+0.51%
66,105.23
+0.57%
11,537.98
+1.76%
2,995,129
+2.81%
2,510.72
+2.09%
60,222.25
-0.17%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 171,906.72 | +0.51% | +21.85% | 171,031.73 | 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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