The high interest rates in Brazil and the more favorable climate in foreign markets made the financial market have another day of relief. The dollar fell for the seventh time in a row and is getting closer to R$4.80. The stock market rallied sharply and closed at its highest level in nearly seven months.
The commercial dollar ended this Thursday (24) sold at R$ 4.832, with a decrease of R$ 0.012 (-0.25%). The quotation even dropped to R$ 4.76 at the lowest of the day, around 11:30 am, but a buying move due to the low price made the currency return to above R$ 4.80.
The US currency is at its lowest level since March 13, 2020, when it was selling at R$4.81. The currency accumulates a fall of 6.28% in March and 13.34% in 2022.
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The day was also marked by euphoria in the stock market. The B3 Ibovespa index closed at 119,053 points, up 1.36%. The indicator reached the highest level since September 1st of last year, boosted by the recovery of US stock markets and by statements by the president of the Brazilian Central Bank (BC), Roberto Campos Neto.
Commenting on the March Inflation Report, Campos Neto said that the BC intends to conclude, in May, the cycle of hikes in the Selic rate (basic interest rates in the economy). In the minutes of the Monetary Policy Committee (Copom) meeting, the BC informed that the next meeting should result in an increase of 1 percentage point in the Selic, to 12.75% per year.
The expectation that the end of the interest rate hike is approaching stimulates the investment of resources in the stock market, which is a riskier investment. High interest rates and the appreciation of commodities (primary goods with international prices), caused by the war between Russia and Ukraine, stimulate the inflow of foreign exchange, pushing down the dollar price.
*With information from Reuters
