Dollar has little change after the previous day’s surge

The dollar fluctuated between stability and a slight increase on Wednesday (8), taking a break after rising strongly in the last session, as investors awaited the next monetary policy steps from the world’s main central banks and evaluated Brazil’s fiscal outlook. .

At 9:12 am (GMT), the spot dollar advanced 0.25%, at R$ 4.8861 on sale.

On B3, at 9:12 am (GMT), the first-maturity dollar futures contract rose 0.30% to R$4.9185.

The day before, the US currency in sight jumped 1.63%, to R$ 4.8741 on sale.

This Tuesday (7), the sharp rise in the American currency was generated by the concern of investors with the government’s proposal to reduce federal taxes and reimburse states that accept zero ICMS on fuel.

The currency advanced 1.41%, quoted at R$4.8740 on sale, the highest closing value since May 19. During the trading session, the dollar reached R$ 4.9340.

The real had the worst performance against the dollar among the main global currencies and, in the comparison between emerging countries, it only fell more than the Russian ruble.

On the Brazilian Stock Exchange, the Ibovespa index dropped 0.11%, to 110,069 points, in a day with little oscillation and a trading volume considered low – approximately R$ 20.9 billion.

The domestic scenario was pointed out as the main responsible for the rise in the dollar, after President Jair Bolsonaro (PL) said the day before that the Executive is willing to zero federal taxes levied on gasoline, gas, ethanol and diesel in exchange for a reduction in the charge charged by the federative entities, which would be reimbursed by the federal government.

Rodrigo Moliterno, head of equity at Veedha Investimentos, commented that the “reading made by the market is that fiscal risk becomes imminent” in a scenario where “anything is possible with the government trying to reverse its unpopularity”.

​Moliterno highlighted other side effects of the fuel discussion in the Brazilian stock market.

In the case of Petrobras, whose most traded shares rose 1.19%, investors began to assess that the Bolsonaro administration will bet on economic measures to contain the rise in fuel prices, instead of directly interfering in the company’s management.

In the technology and retail sectors, which are more vulnerable to inflation and high interest rates, fiscal concerns have led to declines. Magazine Luiza plunged 3.24%. Cielo (-4.28), Soma (-4.14%) and Positivo (-4.07%) also featured among the main falls.

Responding to the expectation of a rise in iron ore with the reduction of restrictions on economic activity to contain Covid in China, Vale rose 2.34%.

In the short-term interest market, the DI (Deposito Interbancários) rate rose 35 basis points at the close of the day, to 13,480 points (13.48% per year).

Abroad, the American market closed with its main indexes in the black, despite concerns about inflation that continue to press the rise in long-term interest rates in the country.

The New York Stock Exchange’s benchmark, the S&P 500, rose 0.95%. The Dow Jones gained 0.80%. The technology-focused market accompanied by the Nasdaq index advanced 0.94%.

“Day of caution in the markets as investors prepare for the European Central Bank’s decision on Thursday (9) [sobre o aumento da taxa de juros diante da alta da inflação na região] and the CPI [índice de inflação] of the United States on Friday (10)”, highlighted Nicolas Borsoi, chief economist at Nova Futura.

with Reuters