Dollar falls to R$ 5.22 after Central Bank’s Copom meeting
Expectations of a slowdown in the U.S. economy and indications that the Brazilian central bank is close to ending the cycle of interest rate hikes kept the financial markets calm. The dollar fell and returned to the vicinity of R$5.2. The stock market rose more than 2% and reached the highest level in almost two months.
The commercial dollar closed this Thursday (4) at R$ 5.22, down R$ 0.058 (-1.09%). The price started the day with a high but reversed the trend following the international market and closed near the day’s lows.
Despite the decline today, the dollar still accumulated a high of 0.89% in the week. Last Friday (29), the currency was sold at R$ 5.174.
The stock market recorded another day of solid gains. The Ibovespa index of B3 closed at 105,892 points, up 2.04%.
Driven by the release of corporate earnings above forecasts and bets on the end of the highs in Selic (prime rates of the economy), the Brazilian stock market closed at its highest level since June 9.
After the meeting of the Monetary Policy Committee (Copom), in which the Selic was raised to 13.75% per annum, the Central Bank issued a statement admitting that it would raise rates to 14% per annum at its next meeting in late September.
Bets on the end of the rate hike favor the stock market because it encourages investors to seek riskier assets such as equities.
In addition to domestic stimulus, the financial market also received support from abroad on Thursday. The dollar fell globally in anticipation of tomorrow’s release of labor market data in the United States (5).
If the labor market slows in the United States, the chances that the Federal Reserve (Fed, U.S. central bank) will begin to cut interest rates in 2023 increase.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.01%
174,586.26
+0.01%
66,191.11
-0.15%
11,369.18
-0.71%
3,024,971
+0.00%
2,504.68
-0.15%
60,449.35
+0.30%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,586.26 | +0.01% | +21.85% | 174,576.80 | 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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