Dollar drops as market awaits US inflation data

The commercial dollar started this Friday (10) down 0.30%, quoted at R$ 4.9030 on sale. The American currency should fluctuate as investors await the release of the consumer inflation index in the United States later this morning.

A possible acceleration in prices will indicate to the market that the Fed (Federal Reserve, the American central bank) will maintain the pace of interest rate hikes in the country, which would potentially favor the global appreciation of the dollar.

The day before, the world financial market closed with a strong negative bias and pushed the Brazilian Stock Exchange to the fifth consecutive daily decline.

The benchmark indicator of the Brazilian stock exchange fell 1.18%, to 107,093 points. Devaluations of companies in the mining, steel and oil sectors pulled the Ibovespa down. The commercial dollar rose 0.59%, quoted at R$4.9180 on sale.

The commodities segment, one of the most important in the country’s stock market, was affected by the possibility of a slowdown in economic activity in China, the main consumer of these basic materials. Vale fell 3.38%. Petrobras lost 1.44%.

Covid containment measures are again worrying the market days after the loosening of restrictions in Shanghai, the country’s financial center. The main index that tracks shares of companies in this region closed down by 1.05%.

On the positive side of the balance of the Brazilian stock market, Eletrobras rose 2.14% on the day of its share pricing.

The company set the price at R$42 in an offer that resulted in its privatization, moving R$29.29 billion.

The value defined in the public offering was slightly below the quotation of R$ 43.04 of the company’s common shares traded on this Thursday.