The prospect of high interest rates in Brazil pushed the dollar down and made the US currency close with the biggest drop in two weeks. The stock exchange did not have the same tranquility and fell for the second consecutive session, pressured by shares of exporting companies of commodities (primary goods with international quotation).
The commercial dollar ended this Monday (18) sold at R$ 4.648, with a fall of R$ 0.048 (-1.02%). The quotation started trading close to stability, but plummeted after the opening of business in the North American market, until it closed at the low of the day.
That was the dollar’s biggest drop since April 4. With today’s performance, the currency accumulates a low of 2.37% in April. In 2022, the currency declines 16.64%.
The stock market had a more tense day. The B3 Ibovespa index closed the day at 115,687 points, down 0.43%. The indicator came to operate close to stability in the middle of the afternoon, but lost strength towards the end of the session, pressured by shares of mining and oil companies.
On a public holiday in several European countries, the slowdown in the Chinese economy in March affected the shares of companies exporting commodities. the imposition of lockdowns in the Asian country to contain the cases of covid-19 reinforced the prospect that China will reduce demand for minerals and agricultural products.
In relation to the dollar, the real had one of the best performances on the planet this Monday because of the prospect that the Brazilian Central Bank will raise the Selic rate (basic interest rates in the economy) beyond what was expected. The fact was reinforced after the IGP-10 of Fundação Getulio Vargas (FGV) rose 2.48% in April.
The data show that the preview of inflation rates remains high, forcing the monetary authority to keep tightening interest rates. Higher rates in emerging countries such as Brazil help stem capital flight to developed economies, which are also raising interest rates this year.
*With information from Reuters
