In another day of relief in the financial market, the dollar fell for the fifth time in a row and had the biggest weekly decline since August. The stock market alternated ups and downs, but closed stable after the release of the January inflation preview.
The commercial dollar ended this Friday (24) sold at R$5.918, down R$0.008 (-0.13%). The price fell until the early afternoon, when it reached R$5.86 at around 2 pm, but the fall slowed after that time, with investors taking advantage of the low price to buy dollars. Towards the end of the session, the exchange rate closed close to stability.
The US currency is at its lowest level since November 27th. The currency fell 2.42% for the week, the biggest decline for five business days since the week ending August 9.
The stock market had a more volatile day. The Ibovespa index, from B3, closed at 122,447 points, with a drop of just 0.03%. The indicator changed direction several times throughout the day, but ended in negative territory with the rise in interest rates in the futures market.
Both domestic and international factors influenced the market this Friday. In the internal scenario, the disclosure that the Broad National Consumer Price Index-15 (IPCA-15) slowed down to 0.11% in January it caused the stock market to fall.
Although the preview of official inflation registered the lowest level for January since the creation of the real, the index came in above expectations, with financial institutions expecting zero inflation for the month. This increased the chances of the Central Bank (BC) increasing the Selic rate (the economy’s basic interest rate) beyond what was expected, which discourages investments in the stock market.
On the international scene, however, the dollar fell across the planet after the new North American president, Donald Trump, announced the possibility of a trade agreement with China following a conversation with Chinese president, Xi Jingping. The revelation, made in an interview with the American broadcaster Fox News, calmed the global market, by reducing the chance of tariffs from the new United States government.
*With information from Reuters
