After yesterday’s storm (10), the financial market had a day of truce, rocked by new statements from members of the transition team, at postponement of the Proposed Amendment to the Constitution (PEC) of the Transition and the international scene. The dollar dropped to close to BRL 5.30, but had its biggest weekly rise since May 2020. The stock market rose more than 2%, but dropped about 5% for the week.
The commercial dollar ended this Friday (11) sold at R$ 5.334, with a fall of R$ 0.063 (1.17%). The price operated lower throughout the session, reaching R$ 5.24 at the lowest of the day, around 12:30 pm.
Despite today’s drop, the US currency is up 5.49% for the week. That was the biggest weekly gain since the second week of May 2020, at the start of the Covid-19 pandemic. The currency accumulates a fall of 4.34% in 2022.
In the stock market, the day was marked by recovery. The B3 Ibovespa index closed at 112,253 points, up 2.26%. Despite today’s high, the indicator retreated 4.99% in the week.
The postponement of the presentation of the Transition PEC to next week helped calm investors. In addition, new statements from members of President-elect Luiz Inácio Lula da Silva’s government transition team helped to assuage investor concerns.
The budget coordinator of the transition team, former governor of Piauí and senator-elect Wellington Dias (PT), said that the negotiations will take fiscal responsibility into account. He was corroborated by the general rapporteur of the 2023 Budget project, Senator Marcelo Castro (MDB-PI). The stock market also rose because investors took advantage of the fall in the price of certain securities to buy shares.
Abroad, the dollar fell against the main currencies, still reflecting the deceleration of consumer inflation in the United States. Lower inflation increases the chances that the Federal Reserve (Fed, US Central Bank) will keep interest rates high in the world’s largest economy for less time than expected. The relaxation of restrictions against covid-19 in some regions of China also helped emerging countries on Friday.
* With information from Reuters
