Against the international market, the dollar fell again in Brazil and closed the sixth week in a row at a low, with foreign flows attracted by high interest rates in the country. The stock market plummeted for a second day as geopolitical tensions in Ukraine escalated.
The commercial dollar closed this Friday (18) at R$ 5.14, with a decrease of R$ 0.027 (-0.52%). The currency operated lower throughout the day and reached BRL 5.11 at the session low, around 2 pm.
The currency closed the week with a retreat of 1.95%. The drop reaches 3.13% in February and 7.82% in 2022.
The stock market performed in the opposite direction. B3’s Ibovespa index closed the day at 112,880 points, down 0.57%. The indicator was dragged again by the fall in international markets, amid the prospect of conflicts between Russia and Ukraine.
On Friday, the United States and allied countries said they intend to impose “concentrated sanctions” against Russian officials if there is an invasion of Ukraine. According to the US government, the punishments are not intended to affect Russian citizens, but the government of Vladimir Putin. At the same time, separatists in eastern Ukraine announced their intention to evacuate citizens of Russian origin to the neighboring country.
Geopolitical instability did not affect the exchange rate. On a day when it rose against the main currencies, the US currency fell against the real. The rise in the Selic rate, currently at 10.75% per year, is attracting foreign capital to Brazil, even with the prospect that the United States will increase rates as of March. The Selic is at 10.75% a year, the highest level since July 2017.
* With information from Reuters
