In a day of global nervousness, the dollar surpassed the barrier of R$ 5.20 and reached the highest value in more than four months. The stock exchange amended the third straight drop and reached the lowest level since November 2020.
The commercial dollar ended this Thursday (23) sold at R$5.23, up by R$0.053 (+1.02%). In the morning, the price came to operate close to stability at times, but soared after statements by the President of the Federal Reserve (Fed, US Central Bank), Jerome Powell.
The quotation is at its highest value since February 11. With today’s performance, the US currency rose 10.04% in June alone. In 2022, the currency drops 6.2%.
The day was also marked by nervousness in the stock market. The B3 Ibovespa index closed at 98,080 points, down 1.45%. The indicator is at the lowest level since November 4, 2020, just before the presidential elections that marked the defeat of Donald Trump.
In a public hearing at the US Congress, Jerome Powell said that a recession in the world’s largest economy “is clearly a possibility” after the Fed raised interest rates by 0.75 percentage point last week. Even with the possibility of a shrinking US economy, Powell said the Fed has an “unconditional commitment” to controlling inflation, which is at a 41-year high in the US.
Investors interpreted Powell’s words as a sign that the Fed may raise interest rates more than expected in the coming months. Higher rates in advanced economies encourage the flight of resources from emerging countries such as Brazil.
On the domestic front, negotiations around a possible increase in Auxílio Brasil, gas aid and the granting of emergency aid to truck drivers put pressure on the market. Some investors are afraid of the impact of the measures on public accounts.
*With information from Reuters
