The dollar fluctuated between stability and a slight increase against the real this Wednesday (20), with international investors showing caution ahead of monetary policy decisions by major central banks and an eye on energy risks in Europe, while the tense political news in Brazil contributed to a lower risk appetite.
At 9:10 am (BrasÃlia time), the spot dollar advanced 0.15%, at R$ 5.4276 on sale.
On B3, at 9:10 am (GMT), the first-maturity dollar futures contract rose 0.24% to R$5.4410.
On Tuesday (19), the international environment favorable to risk benefited the Brazilian Stock Exchange. The Ibovespa closed up 1.37%, with 98,244 points.
On the day it announced an average reduction of 4.9% in the price of gasoline, Petrobras saw its most traded shares rise 2.03%. The company made one of the main contributions to the rise in the stock exchange’s benchmark index.
The news about the drop in fuel was expected by the market. In addition, the raw material produced by the company gained value for the third consecutive day.
At the end of this afternoon, the barrel of Brent oil advanced 1.04%, at US$ 107.38 (R$ 578.76). The commodity accumulates a high of approximately 8% in three days. This year, oil has already risen 38%.
World stock markets showed strong gains. Investors looked for opportunities while awaiting interest rate decisions in Europe and the United States, in addition to evaluating the quarterly earnings season for American companies.
In New York, the benchmark S&P 500 rose 2.76%. The Dow Jones (2.43%) and Nasdaq (3.11%) indices also advanced.
In exchange, the dollar retreated against most of the main currencies. In Brazil, however, after a morning of strong appreciation of the real, the Brazilian currency erased its gains in the late afternoon.
“When we talk about the real against the dollar in the domestic environment, we have to see that there is an electoral environment here, in addition to the uncertainties that come from abroad, which shows that we will hardly have a fall [forte] the dollar against the real in the short term”, commented Marcus Labarthe, partner at GT Capital.
In the interest rate market, DI rates (Interbank Deposits) maturing in 2023 and 2024 were around the level of 14% per year, reinforcing the uncertainties surrounding the country.
Next week, the US Federal Reserve will release the country’s new interest rate. The market expects a 0.75 percentage point increase, matching the last increase.
Later this week, the European Central Bank is also expected to raise interest rates for the first time in 11 years. The meeting of the monetary authority will be on Thursday (21).
By raising interest rates, the world’s main economies are trying to curb global inflation caused by the breakdown of supply chains during the pandemic and exacerbated by the Ukrainian War. The side effect of the credit crunch, however, could be a global recession.
with Reuters
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
