The release of weak economic indicators in the United States caused the dollar to fall and close below R$5.10 for the first time in a week. Benefited from the profit of retail companies and the recovery of commodities (primary goods with international quotation), the stock market rose more than 2%, after two consecutive falls.
The commercial dollar closed this Tuesday (23) sold at R$ 5.099, with a decrease of R$ 0.067 (-1.31%). The price started the day at a slight low, but accelerated the fall after data showed a slowdown in US economic activity.
At the lowest level since August 15, the dollar accumulated a drop of 1.45% in August. In 2022, the decline reaches 8.55%.
In the stock market, the day was marked by recovery. The B3 Ibovespa index closed at 112,857 points, up 2.13%. The indicator detached itself from the North American stock exchanges, which fell with the economic slowdown in the United States.
Indicators released on Tuesday showed that the index of business activity in the private sector in the United States registered the lowest level in 18 months. At the same time, home purchases in the world’s largest economy reached the lowest level in six years, influenced by recent interest rate hikes that impacted mortgage prices.
The data increased pressure for the Federal Reserve (Fed, US Central Bank) to reduce the pace of interest rate hikes at upcoming meetings. Higher rates in advanced economies such as the United States encourage capital flight from emerging countries such as Brazil, but lower-than-expected increases help to contain the pressure.
Regarding the stock market, the worsening of the drought in China helped the Brazilian stock market. This is because expectations have increased that Brazil will export more food to the Asian country. At the same time, bets that the cycle of high Selic rate (basic interest rates in the economy) is nearing its end boosted the shares of retail companies.
*With information from Reuters.
