The dollar had a slight decline against the real this Monday (1st), with the prospects for interest rates in both the United States and Brazil -on the eve of the Central Bank’s monetary policy meeting- dominating the focus of investors, who followed eye on international fears of recession.
At 9:06 am (GMT), the spot dollar retreated 0.23%, to R$ 5.1609 on sale.
On B3, at 9:06 am (GMT), the first-maturity dollar futures contract dropped 0.31% to R$5.2060.
The stock market ended July showing signs of a strong recovery, while the dollar lost strength with the cooling of the US economy, suggesting to investors that the policy of aggressive rate hikes in the country may be reaching its limit.
This context benefits investments in variable income, to the detriment of fixed income pegged to the dollar.
In Brazil, the Ibovespa index rose 4.69% in the month, the highest monthly growth since March. The rebound followed an 11.5% drop in June — the worst since a nearly 30% dip in March 2020, when the start of the pandemic baffled investors.
At the close of this Friday (29), the benchmark indicator of the Brazilian Stock Exchange advanced 0.55%, to 103,164 points. The best score since June 10 was ensured by the strong rise in shares of companies in the oil sector. Among the main highlights, Petrobras’ preferred shares soared 5.76%.
The domestic performance followed the positive moment abroad, mainly in the American market. In New York, the S&P 500 benchmark jumped 9.11% in July, hitting the biggest monthly gain since November 2020.
In the Brazilian exchange market, the dollar lost 1.12% in July and, as a result, has accumulated a fall of 7.22% this year.
On Thursday (28), the US government reported that the country’s GDP (Gross Domestic Product) fell at an annualized rate of 0.9% in the last quarter. Market expectations were up 0.5%.
The second consecutive quarterly slowdown of the US economy fulfills the criteria most used to classify a recession.
This lowered investors’ bets for more aggressive hikes in the Fed’s interest rate.
with Reuters
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