The Brazilian financial market started the week with a strong performance this Monday (20), in a double movement of appreciation of the Ibovespa and a further fall of the dollar. The main stock market index reached 145 thousand points and reached its highest level since the beginning of the month. The US currency closed below R$5.40 for the first time in 11 days.
The commercial dollar closed this Monday sold at R$5.371with a decrease of R$0.034 (0.63%). The price fell for the fourth time in a row. At the low of the day, around 11:15 am, it reached R$5.36.
The currency is at its lowest value since October 9thbefore President Donald Trump threatened to raise tariffs on China, amid pressure for the Asian country to open the rare minerals market. The currency accumulates a drop of 13.09% in 2025.
The day was also positive on the stock market. The Ibovespa index, from B3, closed at 144,509 points, up 0.77%. The indicator is at the highest level since the 1st, driven by shares of mining companies and banks.
The advance was driven by domestic and external factors. Internally, investor optimism was supported by positive news involving large companies and the downward revision of inflation projections in the Central Bank’s Focus Bulletin. Abroad, slightly better indicators of the Chinese economy helped to strengthen risk appetite.
In the case of the dollar, the currency maintained its downward trend, influenced by the interest rate differential between Brazil and the United States. With Selic maintained at 15% per year, the country remains attractive to foreign investors, especially given the expectation of interest cuts in the American market.
*With information from Reuters
