The relief in the domestic and international markets made the dollar have the biggest daily drop in 16 months and close below R$ 5.40. The stock market rose more than 1% and closed above 100,000 points for the first time in nearly three weeks.
The commercial dollar ended this Monday (25) sold at R$ 5.37, with a decrease of R$ 0.129 (-2.35%). The price operated lower throughout the day, closing close to the session’s low levels.
This was the first time, since the 11th, that the currency closed below R$ 5.40. The dollar accumulates a rise of 2.58% in July and a fall of 3.69% in 2022. The commercial euro, which closed last week at R$5.61, after the European Central Bank’s interest rate hike, fell 2, 14% and closed at R$ 5.49.
In the stock market, the day was also marked by recovery. The B3 Ibovespa index closed at 100,270 points, up 1.36%. The indicator closed at the highest level since July 8.
Both the domestic and international scenarios contributed to the improvement in the financial market after days of tension. In Brazil, investors reacted positively to the statement by the Special Secretary for the Treasury and Budget of the Ministry of Economy, Esteves Colnago, that the draft bill for the 2023 Budget provides for the return of Aid Brazil to R$ 400reducing pressures on public accounts.
In the foreign market, the dollar fell globally with the reduction of tensions in relation to the meeting of the Federal Reserve (US Central Bank), tomorrow (26) and Wednesday (27). Bets have been reduced that the Fed will raise interest rates in the world’s largest economy by 1 percentage point, raising rates by 0.75 point. Higher interest rates in advanced economies encourage capital flight from emerging countries such as Brazil.
*With information from Reuters