The dollar fell against the real in the first trades this Monday (14), in an adjustment movement after registering its best week in two and a half years and despite the aversion to risk abroad, while investors were waiting for the definition of the text. of the Transition PEC, which the elected government of Luiz Inácio Lula da Silva seeks to allow for extra-ceiling spending in 2023.
At 9:18 am (GMT), the spot dollar retreated 1.01%, to R$ 5.2762 on sale, in a session that should have reduced volumes as it is the eve of a holiday in Brazil.
On B3, at 9:18 am (GMT), the first-maturity dollar futures contract dropped 1.48% to R$5.2935.
On Friday (11), investors adjusted their portfolios in an attempt to find new prices for the risk of investing money in the Brazilian stock market after President-elect Luiz Inácio Lula da Silva (PT)’s speech the day before was understood by the market. as a defense of the lack of control of public accounts in the name of the need to increase spending on social assistance.
Abroad, news that China is taking firm steps to ease Covid control restrictions has encouraged foreign investors and this has benefited the entire raw materials sector.
As a result, the spot commercial dollar dropped 1.31%, at R$5.3250, in this trading session. In the week, however, there was a rise of 5.4%, which meant the biggest weekly advance of the currency since May 2020, when the economy was shaken by Covid. Even so, the American currency accumulates a fall of 4.5% against the real in 2022.
On the Brazilian Stock Exchange, the Ibovespa rose 2.26%, to 112,253 points. The rise in this session was not enough to offset a string of setbacks in recent days that resulted in a 5% weekly drop in the country’s main stock index.
The escalation of the raw materials sector in Brazil also gained strength with international investors still optimistic about a slowdown in US inflation that surprised analysts on Thursday (10). The S&P 500, Wall Street’s benchmark, rose 0.92% on Friday and ended the week up 5.90%. Nasdaq, which brings together tech stocks, soared 8.10% on the week.
If, on the one hand, the stock market and the dollar showed some relief, on the other hand, interest rates continued to rise strongly. DI rates (interbank deposits) maturing in 2024 jumped to 13.97% this Friday. A week ago, this indicator was at 12.94%. The rise was widespread in all interest rate contracts maturing in the coming years.
The opening of yield curves, as this scenario is called in market jargon, indicates distrust about the next government’s commitment to containing inflation.
On Thursday (10), the financial market reflected the discontent of investors with the criticism made by Lula of rules that limit public spending.
PT’s statements had an impact on a business environment that had been affected since the early hours of the day by the release of October’s inflation, which accelerated faster than expected.
with Reuters
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