In Brazil dollar rises above 5 reais amid China worries
The dollar started its session on Friday on an uptick, surpassing the R$ 5.00 threshold, a level not seen since June 2nd.
Global factors heavily influenced this movement. Despite easing pressures from Treasuries, anxieties about China persist, especially after real estate developer Evergrande sought bankruptcy protection in the U.S.
By 9:55 a.m., the dollar was traded at an increase of 0.11%, priced at R$ 4.9870, but peaked at R$ 5,0015 earlier.
The future contract for September for the U.S. currency showed a 0.19% rise, reaching R$4.9995. Internationally, the DXY index was up by 0.09% at 103.662 points, with most currencies tracked by Valor declining against the dollar.
The central concern isn’t solely the Treasuries, but the spotlight is on China, particularly due to Evergrande seeking protection for restructuring over US$19 billion in offshore debts.
This step further indicates the challenges in China’s property sector, a pivotal driver for its economy.
Additionally, Chinese authorities have shifted their attention to the foreign exchange market.
The intervention by China’s central bank (PBoC) in currency exchanges follows reports suggesting that state banks were directed to intensify yuan interventions to mitigate currency volatility.
Notably, currencies linked to commodities or the Chinese economy, including the Norwegian krone, Australian dollar, Chilean peso, and the real, experienced some of the weakest performances.
Conversely, pressures from previous sessions are now alleviated, with U.S. Treasury yields seeing adjustments.
In Brazil, central bank officials are meeting with financial market economists, with the external scenario dominating discussions.
Furthermore, BC president, Roberto Campos Neto, is attending an event at the Brazilian Artificial Intelligence Forum.
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Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
+0.76%
185,231.44
+0.76%
65,110.57
+0.26%
11,061.81
+0.05%
2,785,510
+0.11%
2,549.57
-0.37%
60,410.88
+0.33%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,231.44 | +0.76% | +21.85% | 183,827.59 | 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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