Fears regarding the rise in interest rates in the United States weighed for another day on the financial market. The dollar even exceeded R$ 5.30, but slowed down at the end of the negotiations. The stock market had its fourth consecutive drop and is at its lowest level since the beginning of August.
The commercial dollar ended this Friday (16) sold at R$ 5.259, up by R$ 0.02 (+0.38%). The currency had a tense day, rising to R$5.31 around 11 am. The price, however, decelerated with profit taking (when investors sell an asset to pocket recent gains) and with the release of data that suggest a drop in inflation in the United States in September.
With today’s performance, the US currency closed the week up 2.17%. That was the biggest weekly gain since the second week of July. The currency accumulates a rise of 1.09% in September and a fall of 5.69% in 2022.
The stock market had another day of pessimism. The B3 Ibovespa index closed at 109,280 points, down 0.61%. The indicator continued to fall due to pressures from international markets.
The Brazilian stock market is at its lowest level since August 9. US stocks also closed lower, amid expectations about the direction of US monetary policy.
On Wednesday (21), the Federal Reserve (Fed, US Central Bank) will decide how much it will raise basic interest rates in the largest economy on the planet. Recent figures, such as consumer inflation in August and labor market data, are coming in higher than expected, which has eliminated the Fed’s chances of raising rates by 0.5 point and consolidating expectations of a 0.75 high. point, with some investors betting on a 1-point increase.
Higher interest rates in advanced economies encourage the flight of resources from emerging countries such as Brazil. Also next week, the Brazilian Central Bank will decide whether to maintain the Selic rate (basic interest rates for the economy) at 13.75% per year or raise it to 14%. A rise in the Selic would help to reduce pressures on the dollar, but would harm the stock market and economic growth.
* With information from Reuters
