In a day of relief in the international market, the dollar fell and the stock market closed higher, despite the strong volatility during the session. Despite today’s rally, the US currency posted its biggest weekly rise in a month, and the stock remains close to November 2020 levels.
The commercial dollar ended this Friday (15) sold at R$ 5.405, with a decrease of R$ 0.028 (-0.52%). The price started the day on a high, rising to R$5.45 shortly before 11 am. With the reduction of external tensions, the currency dropped to R$5.37 around 12:30 pm, but was unable to remain below R$5.40.
The US currency ended the week up 2.6%. That was the biggest weekly gain in a month. The dollar rose 3.34% in June, but accumulated a fall of 3.01% in 2022.
In the stock market, the day was also marked by volatility. The B3 Ibovespa index closed at 96,551 points, up 0.45%. The indicator started the day low, but recovered later in the morning, influenced by the North American market.
International investors continued to echo statements by Federal Reserve officials (Fed, US Central Bank) that US base interest rates will rise by 0.75 percentage point at the next meeting, scheduled for the end of July. During the week, bets rose that the Fed could raise interest rates by one percentage point as U.S. inflation hit 9.1% in June, the highest level in 41 years.
Research has also brought relief to international markets that shows that economic activity is weakening in some regions of the United States. That reduces pressure on the Fed to be more aggressive at upcoming meetings. As a result, US stocks rose today, helping the global market. Higher interest rates in advanced economies encourage capital flight from emerging countries such as Brazil.
In Brazil, investors are still reflecting on the enactment of the constitutional amendment that expands social benefits and creates aid for taxi drivers and truck drivers, totaling R$ 41.25 billion by the end of the year. The National Congress went into recess after enactment and only resumes activities in August, which will take the market’s focus away from internal political issues in the coming weeks.
*With information from Reuters.
