Today, amid global market caution, the U.S. dollar is trading at R$ 4.92 in Brazil.
In response, both U.S. and Brazilian interest rates have shifted. Federal Reserve Chair, Jerome Powell, hints at another rate hike this year.
Furthermore, commodity prices are falling, giving the dollar another boost.
Yesterday, the dollar closed at R$ 4.88. It marked a 0.26% rise from its opening. During the day, the dollar’s high and low were R$ 4.88 and R$ 4.84, respectively.
This year, the Brazilian real has risen 6.97% against the dollar. Its highest point hit R$ 5.46 on January 3rd.
Meanwhile, its lowest point was R$ 4.73 on July 31st. On average, the dollar has traded at R$ 5.01 this year.
Among 23 emerging market currencies, the Brazilian real ranks third in performance. Colombia’s peso leads with a 19.63% gain.
Conversely, Argentina’s peso has lost the most value, plummeting 97.64%.
Let’s look at other Latin American currencies. Colombia’s peso rose by 19.63%. Peru’s sol increased by 2.19%.
Mexico’s peso went up by 12.34%. In contrast, Chile’s peso dropped 3.70%, and Argentina’s peso plummeted 97.64%.
The Ibovespa index closed at 117,845.78 points yesterday, showing a 0.72% rise.
Top performers included CVC Brasil, with a 7.62% increase, Gol, up by 6.09%, and Alpargatas, rising 4.74%.
On the flip side, Petroreconcavo dropped 2.38%, São Martinho fell 2.12%, and Marfrig declined 1.75%.
Background
In this context, the dollar’s rise in Brazil indicates broader trends. Global caution plays a big role.
The recent hint from Jerome Powell about rate hikes reveals growing U.S. confidence. Yet, Brazil seems to be taking cues from the U.S., adapting its own rates.
Similarly, falling commodity prices should not be ignored. Brazil, a commodity-rich nation, usually gains from high prices.
Now, the opposite is happening, pressuring its currency.
This dynamic raises concerns about emerging markets. The real’s performance shows resilience but also vulnerability.
Third among 23 emerging currencies, the real reflects the complex global landscape. Colombia and Mexico also show gains, but Argentina suffers.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
-0.79%
60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 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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