Amid expectations about interest rates in Brazil and the United States, the financial market started the week with optimism. The dollar had its biggest one-day drop since late July. The stock market rose more than 2% and reached its highest level in a week.
The commercial dollar ended this Monday (19) sold at R$ 5.165, with a decrease of R$ 0.094 (-1.79%). In percentage terms, it was the biggest drop since July 27, when the price had fallen 1.91%.
The US currency is at its lowest level since the 12th, when it closed at R$5.09. With today’s performance, the currency accumulates a drop of 0.71% in September and 7.37% in 2022.
The stock market also had a day of euphoria. The B3 Ibovespa index closed at 111,824 points, up 2.33%. The indicator started the day low, but reversed its movement during the morning and started to shoot.
The movement of the Brazilian stock exchange contrasted with the North American stock exchanges, which closed slightly higher after fluctuating significantly throughout the day, with expectations about interest rates in the largest economy on the planet. On Wednesday (21), the Federal Reserve (Fed, US Central Bank) will release the new basic interest rate in the United States.
Most investors expect a rise of 0.75 percentage point, but part of the market has started to bet on a 1-point increase because of the persistence of US inflation and the good performance in the labor market.
Higher interest rates in advanced economies encourage capital flight from emerging countries such as Brazil. However, Brazilian high interest rates hold the dollar. Also on Wednesday, the Monetary Policy Committee (Copom) of the Central Bank will decide whether to maintain the Selic rate (basic interest rates in the economy) at 13.75% per year or whether to raise it to 14%.
*With information from Reuters
