In another day of turbulence in the domestic and foreign markets, the dollar approached R$5.90 and closed at its highest level since the beginning of the covid-19 pandemic. The stock market fell for the fourth consecutive time and fell below 130 thousand points.
The commercial dollar ended this Friday (1st) sold at R$5.87, up R$0.106 (+1.53%). The price started the day low, falling to R$5.76 shortly before 10 am, but rose after the opening of the North American market, until it closed close to the day’s high.
The North American currency is at its highest level since May 13, 2020, when it closed at R$5.90. With today’s performance, the dollar has accumulated an increase of 6.13% since the end of September. In 2024, the currency will rise by 20.95%.
The day was also turbulent on the stock market. B3’s Ibovespa index closed at 128,121 points, down 1.23%. The indicator is at its lowest level since August 7th.
Both domestic and international factors contributed to the market’s malaise this Friday. On the domestic front, the dollar and the stock market were pressured by Finance Minister Fernando Haddad’s trip to Europe next week, which will postpone the mandatory spending review package. Investors consider it urgent to send the measures to Congress.
In the foreign market, the day started with relief, after the announcement that the North American economy created only 12 thousand jobs last month, below the forecast of 100 thousand jobs. In theory, this would encourage a greater reduction in interest rates in the United States, but the drop in vacancies was due to strikes at ports and two hurricanes that hit the country in October, unrelated to the North American economic boom.
The performance of the North American labor market maintained the chances of the Federal Reserve (Fed, North American Central Bank) cutting interest rates by just 0.25 points next week. Furthermore, electoral tensions in the United States have once again put pressure on financial markets across the planet. In addition to the real, the dollar rose against the Chilean, Mexican and Colombian pesos. In the case of Mexico, the North American currency reached its highest value since 2022.
*With information from Reuters
