Fears of a recession in the US economy returned to weigh in the financial market this Friday (22). The dollar, which started the day with a strong fall, ended up slightly higher. The stock reversed morning gains and closed lower.
The commercial dollar ended the day sold at R$5.499, up 0.05%. The price even dropped to R$5.43 around 11:15 am, but the increase in demand during the afternoon brought the currency back to R$5.50.
The quotation is at its highest value since January 24. With today’s performance, the currency rose 1.74% in the week. The dollar accumulates a high of 5.04% in July and a fall of 1.38% in 2022.
The reversal of expectations after a positive morning also occurred in the stock market. The B3 Ibovespa index closed at 98,925 points, down 0.11%. In the morning, the indicator rose by 0.68%, but reversed the movement after bad data from North American companies. Even with today’s fall, the Brazilian stock market rose 2.46% in the week.
The lower earnings report by US companies, mainly in the technology sector, affected the global financial market during the afternoon. Fears that the world’s largest economy will enter recession have increased demand for dollars and US Treasuries, considered the safest investments in the world.
Next Wednesday (27), the Federal Reserve (Fed, US Central Bank) will decide whether to raise US basic interest rates by 0.75 or 1 percentage point to contain inflation in the country, which is at the highest level in 41 years. Higher rates in advanced economies encourage capital flight from emerging countries such as Brazil.
*With information from Reuters
