Despite the turmoil in the international market, the dollar closed practically stable, after touching R$ 5.20 in the late morning. The highlight was the euro, which became worth less than the US currency for the first time in 20 years. The stock market also fell, driven by instability in the United States.
The commercial dollar ended this Monday (22) sold at R$ 5.167, with a decline of only 0.03%. The price started the day on a high, reaching R$ 5.20 several times between 11 am and 12 pm. From the beginning of the afternoon, the currency decelerated, benefited by the recovery of commodities (primary goods with international quotations) and by high interest rates in emerging countries.
The commercial euro retreated throughout the day and closed at R$5.138, down 0.98%. Since 2002, the year of its creation, the currency has not been below the dollar. The euro was affected by the worsening energy crisis in Europe, which brings the threat of recession to the continent. In the event of an economic downturn, the European Central Bank would have little room for maneuver to raise interest rates, unlike the Federal Reserve (Fed, US Central Bank).
In the stock market, the day was also marked by turmoil. The B3 Ibovespa index closed at 110,501 points, down 0.89%. At the beginning of the negotiations, the indicator even dropped below 110 thousand points. However, the inflow of some foreign capital inflows and the disclosure of earnings by retail companies slowed the pace of decline.
This week, the global financial market is awaiting a speech by Fed Chairman Jerome Powell on Friday (26) at the annual meeting of central bank governors in Jackson Hole, United States. Investors expect clues about the pace of interest rate hikes at the Fed’s next meeting.
In the minutes of the last meeting, released last week, the Fed said it would keep interest rates high in the United States as long as inflation is high. This raised doubts as to whether the agency will raise interest rates by 0.5 point or 0.75 percentage point at the next meeting. Higher rates in advanced economies encourage the flight of resources from emerging countries such as Brazil.
*With information from Reuters
