Amid relief in the external scenario and expectations for the minutes of the Monetary Policy Committee (Copom) meeting, the dollar approached R$5.10 and closed at the lowest level in seven weeks. The stock market rose nearly 2%, boosted by Petrobras shares and corporate earnings reports.
The commercial dollar ended this Monday (8) sold at R$ 5.113, with a decrease of R$ 0.054 (-1.04%). The quotation operated in a drop throughout the session, benefited by the inflow of foreign investors in search of high interest rates in Brazil. The currency is at its lowest value since June 15, when it closed at R$5.02.
With today’s performance, the US currency has accumulated a drop of 3.11% since Thursday (4), the day after the Copom meeting. Last week, the Central Bank (BC) indicated that the cycle of high Selic rate (basic interest rates in the economy) is nearing its end.
In the stock market, the day was also marked by euphoria. The B3 Ibovespa index closed at 108,402 points, up 1.81%. The indicator is at its highest level since June 7.
Petrobras shares soared on Monday. Ordinary papers (voted at a shareholders’ meeting) rose 4.82%. Preferred shares (with priority in the distribution of dividends) appreciated by 5.05%. Investors await record distribution of BRL 87.8 billion in dividends from the state-owned companywhich will take place on Thursday (11).
Tomorrow (9), the BC will publish the minutes of the last Copom meeting, which raised the Selic rate to 13.75% per year. The expectation that interest rate hikes will end now, or in September, has attracted foreign investors in search of higher yields in Brazil, which pushes down the dollar rate.
As for the stock market, the end of the monetary tightening raises the shares of companies linked to consumption, such as retailers. The Copom minutes and the release of official inflation in July will indicate whether the BC ended the Selic rate hike at the last meeting or whether it will promote an additional increase in the Selic rate, in September, to 14% per year.
*With information from Reuters
