Dollar retreats against real following abroad

The dollar opened lower against the real this Tuesday (22), following the movement of the currency abroad while investors await the possible formalization of the Transition PEC this week.

At 9:04 am (Brasília time), the spot dollar retreated 0.33%, to R$ 5.2940 in the sale. On B3, the dollar futures contract for the first month fell 0.53% to R$5.3040.

This Monday (21), the US currency closed down, despite the strength of the foreign currency abroad and the downward bias of the global stock market. The dollar retreated 1.22%, to R$ 5.3120 in the sale.

Investors reacted positively to a more conciliatory stance by President-elect Luiz Inácio Lula da Silva (PT) on the country’s fiscal policy.

Lula said, during an event in Lisbon on Saturday, that fiscal responsibility is important, but so is investment to improve the economy and well-being in the country.

News that the Transition PEC could be modified, with the withdrawal of more than R$ 100 billion from the value outside the ceiling, collaborated with optimism among investors.

The Brazilian Stock Exchange ended the day with a gain of 0.81%, at 109,748 points, despite negative pressure from abroad.

The shares of exporters of metallic raw materials in Brazil, for example, suffered from the climate of pessimism in view of the expectation of resumption of restrictions to combat Covid in China.

Petrobras was one of those affected by the scenario. The recovery of oil, after a fall of more than 5% throughout the day, however, contributed to the state’s most traded shares leaving the negative zone and closing at a high of 0.30%.

This improvement in the oil sector occurred after Saudi Arabia denied that it had discussed an increase in production, which could put downward pressure on prices, according to the Bloomberg agency.

Brent oil, which is a parameter for the prices practiced by Petrobras, ended the day close to stability, with a barrel quoted at US$ 87.27 (R$ 465). The price even dropped below $83 throughout the session, the lowest value compared to market closes since January.

Among the companies with the greatest weight in the result of this session, the retailer Magazine Luiza rose 7.30%, days before Black Friday, which takes place this Friday (25).

Strategists at Morgan Stanley, however, cut the recommendation for Brazilian equities to “neutral”, citing growing fiscal risks in 2023.

In the United States, the main stock market indicators retreated. The S&P 500, the benchmark of the New York Stock Exchange, lost 0.39%. Dow Jones and Nasdaq lost 0.13% and 1.09%, respectively.

With Reuters