Dollar goes to R$5.40 on fears of recession and expectations with Fed minutes


The dollar extended its gains against the Brazilian currency for a fifth consecutive session this Wednesday (6), trading above R$5.40, following the international movement of flight to safety amid widespread fear of recession.

The focus of investors in this trading session should be on the release, at 15:00 (Brasília time), of the minutes of the last monetary policy meeting of the US central bank, the Federal Reserve.

At 9:07 am (GMT), the spot dollar advanced 0.31%, at R$ 5.4060 on sale.

On B3, at 9:07 am (GMT), the first-maturity dollar futures contract rose 0.31% to R$5.4450.

The day before, the domestic market had its result affected by the sharp drop in oil. The reference price for a barrel of the raw material dropped 9.45%, to US$ 102.77 (R$ 554).

The drop in Brent oil was caused by investor fears about the possibility of a global recession led by the slowdown in the US economy. A Citigroup report pointed out that the price of a barrel could drop to US$ 65 (R$ 350.30) with the crisis.

On the Brazilian Stock Exchange, Petrobras preferred shares, the most traded in this trading session, dropped 3.81%. The oil company’s ordinary shares plummeted 4.27%.

The performance of the state-owned company gave the main negative contribution to the 0.32% drop in the Ibovespa, the stock exchange’s reference index, which closed with a score of 98,294.

Interest rates on short-term DI (Interbank Deposits) contracts again pointed higher for the second day in a row, after a lull last week. Negotiated between banks, the DI rate rises when the sector expects that the Central Bank will be forced to increase the basic interest (Selic) to contain inflation.

On the New York Stock Exchange, the S&P 500 indicator, which dropped more than 2% during the session, advanced at the end of the day to close with a slight increase of 0.16%.

The boost came from the technology sector, whose technology-focused index, the Nasdaq, gained 1.75%. But in the group of large value companies, the session was negative, with a drop of 0.42% in the Dow Jones index.

with Reuters

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