Still reflecting the decision on interest rates in Brazil and the United States, the financial market had a day with mixed performance. The dollar closed with a slight drop, after operating below R$ 5 during the day. The stock exchange retreated to 110,000 points, pressured by high interest rates in Brazil.
The commercial dollar ended this Thursday (2) sold at R$5.045, with a drop of just 0.3%. Until the beginning of the afternoon, the quotation operated below R$ 5, reaching R$ 4.94 at the low of the day, around 10:30 am. However, the advance of the currency abroad and purchases by importers who took advantage of the low price made the dollar slow down in the afternoon.
The US currency is at its lowest price since August 29, when it closed at R$5.03. In 2023, the currency accumulates a decrease of 4.45%.
The day was more pessimistic in the stock market. The B3 Ibovespa index closed at 110,141 points, down 1.42%. The indicator was driven by mining and state-owned shares, while private bank shares rose after maintaining the Selic rate (basic interest rate) at 13.75% per annum.
In a statement after yesterday’s (1st) meeting, the Central Bank’s Monetary Policy Committee (Copom) indicated the possibility of keeping interest rates high for longer due to the lack of measures to control public spending. At a time when the Federal Reserve (Fed, North American Central Bank) began to ease the monetary tightening, high interest rates stimulate the inflow of foreign capital in emerging countries, such as Brazil.
Despite stimulating the inflow of dollars, high interest rates affect the stock market. This is because high rates reduce interest in stocks, considered risky investments, and increase demand for fixed-income investments, such as National Treasury bonds.
*With information from Reuters
