In another day of global relief, the dollar fell again to less than R$ 5.10 and closed at the lowest value in two months. Benefited by the release of company balance sheets and the foreign market, the stock exchange (B3) had a strong rise and ended the week with the best performance in almost two years.
The commercial dollar closed this fridayFriday (12) sold at R$ 5,074, with a decrease of R$ 0.084 (-1.63%). The price operated lower throughout the session, but accelerated the pace of decline during the afternoon.
The US currency is at its lowest since 15th of June, when it was worth R$ 5.02. The currency accumulates a fall of 1.93% in August and 9% in 2022.
The day was also marked by euphoria in the stock market. The B3 Ibovespa index closed at 112,764, up 2.78%. At the highest level since april 20the Brazilian stock market rose 5.91 in the week, the highest weekly increase since November 2020, the week before the US presidential elections.
The stock exchange benefited from the release of quarterly balance sheets of companies that show higher-than-expected profits.
In addition, Petrobras shares – the most traded – had a strong rise. Ordinary shares (voted at the shareholders’ meeting) rose 8.01%. Preferred shares (with preference in the distribution of dividends) appreciated 7.19%. The state-owned company is selling rights to mine potash in the Amazon Basin.
In relation to the dollar, the international market became more optimistic with the deceleration of inflation in the United States. Lower July price indices for producers and consumers raise expectations that the Federal Reserve will reduce interest rate hikes in the world’s largest economy and begin lowering rates in mid-2023.
Higher rates in advanced economies encourage capital flight from emerging countries such as Brazil. If interest rates rise less than expected, pressures on the dollar and the stock market will fall.
* With information from Reuters