The dollar advanced in the first trades on Tuesday (12), approaching the R$5.40 mark as international demand for security remained high in the face of recession fears, while investors in Brazil awaited the LDO votes. 2023 and the Benefits PEC.
At 9:10 am (Brasília time), the spot dollar advanced 0.39%, at R$ 5.3922 on sale.
On B3, at 9:10 am (GMT), the first-maturity dollar futures contract rose 0.25% to R$5.4200.
This Monday (11), the dollar gained strength globally and the world stock markets fell in the face of the possibility of the negative impact of inflation on the results of companies in the United States, whose balance sheet season begins this week. On Wednesday (13), there will be the release of the consumer price index in the country in June.
As is common in times of market tension, the search for the safety of the dollar propelled the US currency to a global gain of 1.1%, according to a Bloomberg index that tracks the currency.
The performance of the real against the dollar was the worst among the main currencies. In comparison with emerging economies, the negative return of the Brazilian currency was not greater than that of the Colombian peso.
Inflation in the US has forced the Fed (Federal Reserve, the country’s central bank) to adopt a monetary policy of raising interest rates, the result of which could be a worldwide recession.
In addition to inflation in the United States, the advance of Covid-19 in China also punished the Brazilian market by creating fears about the reduction of dollars inflow into the country through exporters of basic materials.
The commodities sector is also the most important on the Brazilian Stock Exchange and was already under pressure with the threat of a global slowdown. Covid-19 restrictions in China amplify this risk.
As a result of external pressures, in addition to the troubled domestic political and fiscal scenario, the stock exchange’s reference index, the Ibovespa, plunged 2.07%, to 98,212 points.
On Monday, the euro renewed its lowest daily rate against the dollar, after falling to a 20-year low last Friday (8). The common currency among European countries closed the day at US$ 1.0064, very close to parity with the American currency.
In Brazilian exchange, the spot euro rose 0.60% against the real and closed the day at R$5.3942. The quotation remains very close to the dollar (R$ 5.3720).
The European currency’s tumble is yet another sign of fears of a global recession. The European Central Bank is also dealing with the need to raise interest rates to reduce inflation and, like the Fed, needs to find the right point of tightening to stop the rise in prices without destroying the economy.
with Reuters
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