Dollar jumps above R$5 on inflationary fears ahead of BC meetings

The dollar jumped shortly after the opening of this Monday (13), operating with ease above the psychological mark of R$ 5, with markets still shaken by recent US inflation data, in a week that will have as highlights the monetary policy of the central banks of Brazil and the United States.

At 9:08 am (GMT), the spot dollar advanced 1.26%, at R$ 5.0521 on sale.

On B3, at 9:08 am (GMT), the first-maturity dollar futures contract rose 1.25% to R$5.0795.

The US spot currency closed the last session, on Friday (10), up 1.48%, at R$4.9892, its highest closing level since May 16 (R$5, 0507).

Last Friday, the main global stock markets recorded a sharp decline after the release of consumer prices in the United States.

The negative day was further reinforced by the resumption of restrictions to contain Covid in China, increasing investors’ fears that interest rates in the main global economies will continue to rise in an effort to curb global inflation.

In decline throughout the session, the benchmark index of the Brazilian Stock Exchange, the Ibovespa, yielded 1.51%, to 105,481 points, the sixth consecutive low. For the week, the index lost 5%, the biggest drop for the period since October last year.

Among the negative highlights of the domestic market, Eletrobras’ common shares plummeted 4.74%, worth R$ 41.00, one day after the company set the price of the paper at R$ 42 in a public offering that resulted in its privatization , moving R$ 29.29 billion.

In New York, the benchmark S&P 500 plunged 2.91%, while the Nasdaq dropped 3.52% and the Dow Jones dropped 2.73%.

The major US indices recorded their biggest weekly percentage declines since the week ended Jan. 21. The Dow Jones was down 4.58%, the S&P 500 was down 5.06% and the Nasdaq was down 5.60% for the week.

with Reuters