O dollar fell 0.61%, quoted at R$ 5.135, around 9:20 am this Monday (8), maintaining a favorable flow of investments to Brazil started the week before.
The movement coincided with the signal from the Monetary Policy Committee (Copom ) that the cycle of high interest rates in Brazil may have ended in August, but leaving open a possible increase in September depending on the conjuncture.
With the Selic rate following market projections, reactions among investors were positive.
In this trading session, the Central Bank will auction up to 15 thousand traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of September 1, 2022.
On Friday (5), the dollar closed down by 1.03%, quoted at R$ 5.168, accumulating a decrease of 0.07% in the week. already the Ibovespa up 0.55% to 106,471 points and a weekly high of 3.19%.
overall feeling
Strong global risk aversion by investors, triggered by fears about a possible widespread economic slowdown due to a series of interest rate hikes around the world to contain record levels of inflation, has eased in recent days, reflecting expectations of a cycle of interest rate hikes. less aggressive in the United States.
The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve has signaled that it may make smaller hikes as the country’s economy already shows signs of slowing, seeking to avoid a recession.
Higher interest rates in the United States attract investments to the country’s fixed income due to its high security and favor the dollar, but harm bond markets and stock exchanges around the world, including the US.
Investors also monitor the state of the economy of China , which also shows signs of a slowdown linked to a series of lockdowns in relevant cities. The Chinese government is expected to intensify an effort to stimulate the economy, which should help maintain high demand for commodities.
In the domestic scenario, the Benefits PEC which creates or expands social benefits with an estimated cost of R$ 41 billion, was poorly received by the market, as it reinforces the fiscal risk by bringing new spending above the ceiling.
The Ibovespa and the real were harmed by the scenario, but an apparent greater optimism in the market allows for a recovery, even if far from the levels of the first quarter of 2022, when they were benefited by the international scenario.
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Each Ibovespa point is equivalent to 1 real. This statement is
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*With information from Reuters
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
