The financial market had a day of panic after the return of the holiday. The dollar rose 4% and had its biggest single-day rise since the start of the Covid-19 pandemic in March 2020. The stock market had its biggest daily drop since November and recorded its worst week in six months.
The commercial dollar ended this Friday (22) sold at R$4.805, up by R$0.185 (+4%). The increase was not greater only because the Central Bank (BC) intervened in the exchange, selling US$ 571 million of international reserves in the late afternoon. At the maximum of the day, around 4 pm, the price reached R$ 4.83. That was the biggest daily high since March 16, 2020.
The real led the devaluation among the main global currencies this Friday. The currency, which accumulated a fall in April, started to register a high of 0.92% in the month. In 2022, the US currency accumulates a decline of 13.82%.
The stock market had a losing day. B3’s Ibovespa index closed at 111,078 points, down 2.86%. Down for five straight sessions, the indicator is at its lowest level since March 15th. In the week, the Brazilian stock market fell 4.67% and had the biggest weekly loss since the third week of October.
The day was marked by tensions both in the external and internal scenario. In the international market, indications that the Federal Reserve (Fed) will be more aggressive in raising interest rates in the United States has increased demand for dollars across the planet. Today, Fed Chairman Jerome Powell confirmed that the body will raise the basic interest rates of the largest economy on the planet by 0.5 point at the next meeting, in early May.
Higher interest rates in advanced economies encourage capital flight from emerging countries such as Brazil. During the week, one of the Fed’s regional officials said he supported a 0.75 point increase at the next Fed meeting.
In the domestic market, political uncertainties after granting a pardon for federal deputy Daniel Silveira eopcollective view of the Federal Audit Court (TCU) in relation to the privatization of Eletrobras impacted the negotiations. Shares in the electricity company tumbled more than 4% on Friday.
* With information from Reuters