Amid fears of an international recession and internal tensions in Brazil, the financial market had the most turbulent month since the beginning of the covid-19 pandemic. The dollar had the biggest monthly increase; and the stock market, the worst one-month drop in more than two years.
The commercial dollar ended this Thursday (30) sold at R$5.235, up by R$0.042 (+0.81%). The US currency had a day of strong volatility, rising to BRL 5.27 at the beginning of trading, falling to BRL 5.18 in the afternoon and rising again towards the end of trading.
With today’s performance, the dollar ended June up 10.03%, the highest monthly increase since March 2020, when the price had risen 15.92%. Despite the rise this month, the currency accumulates a 6.11% decline in 2022.
The day was also tense in the stock market. The B3 Ibovespa index closed at 98,542 points, down 1.08%. The indicator fell 11.5% in June, with its worst monthly performance since March 2020. The stock market lost 17.88% in the quarter, the biggest drop since the first quarter of 2020.
Both internal and external factors contributed to the financial market turmoil on Thursday. Internationally, US stocks had a strong fall today. Wall Street indices had their worst half since 1970.
The global market had a shaky month, amid fears that the world’s largest economy will enter a recession after the Federal Reserve (Fed, US Central Bank) raised basic interest rates by 0.75 percentage point at the beginning of the month. Currently, inflation in the United States is at the highest level since 1981.
In the domestic market, investors are worried about the vote on the proposed amendment to the Constitution that increases Auxílio Brasil to R$600, raises the value of Auxílio Gás and creates benefits for truck drivers and other categories. Today, the Minister of Economy, Paulo Guedes, gave approval for the creation of an aid for taxi drivers, which will increase the impact of the proposal from R$ 38.75 billion to R$ 41.25 billion in this year’s Budget. The text is being voted on this evening by the Senate.
* With information from Reuters
