Dollar falls to R$4.84 and closes at lowest level since March 2020
RIO DE JANEIRO, BRAZIL – The rise in commodity prices (primary goods with international quotations) and high-interest rates in Brazil continue to put pressure on the dollar. After another day of sharp decline, the U.S. currency closed at its lowest level since March 2020. The stock market withstood external pressure and closed slightly higher.
The commercial dollar closed this Wednesday (23) sold at R$4.844, with a drop of R$ 0.071 (-1.84%). The price opened almost stable but fell after the opening of the North American market and closed near the daily minimum.
This was the sixth consecutive decline of the U.S. currency, which reached its lowest value since March 13, 2020, when it was sold for R$4.81. The U.S. currency declined 6.04% in March and 13.12% this year with yesterday’s performance.
In the stock market, the day was more volatile. The Ibovespa index (B3) rose almost 1% around noon but slowed down under the influence of the foreign market and closed up 0.16% at 117.457 points. Even though North American stock markets fell, shares of oil companies and retailers held the Brazilian indicator.
Two factors helped to maintain the inflow of foreign capital to Brazil. The first reason was the high interest rates in Brazil.
The Selic rate (the economy’s prime rate) is currently at 11.75% per annum, its highest level since April 2017, and is expected to rise another point at the next meeting in May. High interest rates keep investors interested as they seek to allocate funds to riskier markets, such as emerging markets.
The second factor is the indirect effect of the war between Russia and Ukraine: the rise in commodity prices.
Today, the price of a barrel of Brent oil (used in international negotiations) rose again, closing at US$120. Higher prices encourage the inflow of foreign currency to countries that export agricultural and environmental products, such as Brazil.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.56%
187,206.89
-0.56%
63,924.77
-0.28%
11,220.60
-0.16%
3,098,898
-1.87%
2,589.69
-1.41%
59,373.28
-0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 187,206.89 | -0.56% | +21.85% | 188,268.59 | 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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