Influenced by the foreign market, the dollar rose for the fifth day in a row and returned to above R$ 5.60. The stock market had its first high after four consecutive losing sessions, but closed the week with a loss of more than 3%.
The commercial dollar ended this Friday (19) at R$5.609, up R$0.039 (+0.7%). The price even dropped during the morning, reaching R$ 5.52 around 11:30 am, but reversed the movement after statements by Federal Reserve (Fed, US Central Bank) officials that the monetary stimuli granted during the pandemic of covid-19 may be withdrawn faster than expected.
Expectations of higher interest rates in the United States encourage the withdrawal of capital from emerging countries, such as Brazil. With today’s performance, the dollar closed the week up 2.8%. The currency still falls in November, but the drop was reduced to just 0.56%. In 2021, the US currency rose 8.1%.
In the stock market, the day was marked by recovery. The B3 Ibovespa index closed the day at 103,035 points, with a gain of 0.59%. The rise was driven by shares of mining companies, influenced by the rise in the international price of iron ore, and by telephone companies, benefited by a decision by the Federal Supreme Court to reduce the Tax on the Circulation of Goods and Services (ICMS) on services of telecommunications in Santa Catarina. Despite today’s high, the stock ended the week with a drop of 3.1%.
The expectation that the Senate will slice the Proposal for Amendment to the Constitution (PEC) of the Precatório brought relief to the market. For investors, the approval of a leaner text will help to reduce fiscal uncertainties. Even with the PEC increasing public spending in 2022, economic analysts believe that this exit would be less costly than an eventual public calamity decree to pay for the R$400 Brazilian Aid.
* With information from Reuters