In another day of tensions in the financial market, the dollar closed slightly higher after spending most of the day alternating highs and lows. The stock fell for the second time in a row and almost canceled out last week’s gains.
The commercial dollar ended this Tuesday (25) sold at R$5.317, up by R$0.014 (+0.26%). The price started the day on a high, reaching R$ 5.35 around 10 am. The external optimism, however, reduced tensions in the domestic market and made the currency fall to R$ 5.28 around 1:30 pm. Towards the end of the afternoon, the currency returned to operate above R$ 5.30.
With today’s performance, the US currency accumulates a drop of 1.45% in October. In 2022, the indicator drops 4.64%.
The day was more tense in the stock market. The B3 Ibovespa index closed at 114,626 points, down 1.2%. The indicator came to operate with stability in the early afternoon, but fell and closed close to the lows of the day.
For another day, the tensions associated with the electoral race once again weighed on the financial market. Traditionally, assets face volatility in polling week. In the case of the stock market, investors are taking advantage of the increase of more than 7% last week to sell shares and pocket the profits.
Internal turmoil was partially offset by relief in the international market. US stock markets closed sharply higher after data showed a drop in property prices in the United States, which indicates that interest rate hikes promoted by the Federal Reserve (Fed, US Central Bank) are having an effect.
Higher interest rates in advanced economies encourage capital flight from emerging countries. Signs of a weakening US economy reduce pressures because the chances increase that the Fed will start lowering interest rates in the world’s largest economy by the middle of next year.
*With information from Reuters
