The release of employment data in the United States made the dollar slightly higher on Friday (7), but the American currency accumulated the biggest weekly drop since the end of July. The stock market retreated for the first time after five straight rallies, but rose nearly 6% for the week.
The commercial dollar closed this Friday sold at R$ 5.212, up just 0.05%. Once again, the price had a day of volatility. At around 9:45 am, it reached BRL 5.25, but dropped to BRL 5.19 at the day’s low, around 2:45 pm. Towards the end of trading, the fall lost strength, until the currency closed stable compared to yesterday (6).
Despite today’s slight increase, the dollar ended the week with a drop of 3.34%. That was the biggest weekly decline since the last week of July, when the currency had fallen 5.91%.
Stock Exchange
The stock market had a day of course correction. After five consecutive rises, the Ibovespa index closed at 116,375 points, down 1.01%. The indicator even rose at the beginning of trading, but started to fall influenced by US stock exchanges and a profit-taking movement, when investors sell shares to pocket recent gains.
The disclosure that the US economy created 263,000 jobs outside the agricultural sector in September was poorly received by the global market. The number came above expectations and reinforced bets that the Federal Reserve (Fed, US Central Bank) will raise interest rates above forecast to hold back inflation.
Higher interest rates in developed countries encourage capital flight from emerging countries such as Brazil. Despite the global high of the dollar, the US currency ended the week in decline because of Monday (3), when it fell 4.09%, still reflecting the second round of the presidential elections.
* With information from Reuters
