Dollar drops more than 1% and goes to R$ 4.72 at the opening of this Tuesday

The dollar opened this Tuesday (29) sharply lower against the real, following the weakness of its pair abroad after encouraging comments from Russian and Ukrainian negotiators about the conflict in Eastern Europe boosted global risk sentiment.

At 9:05 am (GMT), the spot dollar retreated 1.10%, to R$ 4.7187 on sale.

On B3, at 9:05 am (GMT), the first-maturity dollar futures contract fell 1.03% to R$4.7245.

The dollar traded on the interbank market closed the last session up 0.52%, at R$ 4.7714 on sale.

The day before, the drop of approximately 10% in the price of oil on the international market dictated the rhythm of the exchange rate and the stock exchange in Brazil.

A lockdown in Shanghai due to the advance of Covid-19 in China and the expectation of new talks between Russia and Ukraine created the atmosphere for the devaluation of the raw material due to concerns about reduced demand due to interruptions in supply chains in a remote scenario. of increasing Russian supply in the event of a ceasefire.

In addition to high interest rates, the commodities sector is a major attraction in Brazil for foreign investors’ dollars.

The Ibovespa closed Monday (28) down 0.29%, at 118,737 points. State-owned Petrobras lost 2.17% in its most traded shares and, as a result, was the main responsible for the drop in the stock exchange’s benchmark index after eight trading sessions in the dark.

At the end of the session, the market also began to digest the resignation of the president of Petrobras, General Joaquim Silva e Luna, after a series of friction with President Jair Bolsonaro (PL) due to the mega-increase in fuel prices.

Reflecting this bearish scenario on the stock exchange, the dollar closed up 0.56%, rising to R$4.7740. The American currency had its first rise after eight consecutive drops that had put it at the lowest price since the beginning of the Covid-19 pandemic, in March 2020.

This Tuesday, the market will be aware of the restrictions imposed by China on the movement of people in Shanghai, a city with 25 million inhabitants. The lockdown, announced on Sunday (27), is expected to last nine days.

A severe shutdown in China revives fears that the spread of Covid-19 could disrupt the global supply chain.

In addition, there is also concern in the oil market with an eventual increase in supply, which is currently threatened by the restrictions imposed on Russian production. Barriers that could fall or be eased in the event of a ceasefire in the Ukrainian war.

Ukraine and Russia are preparing for the first peace talks to be held in person in more than two weeks, which should take place from this Tuesday (29) in Turkey. Ukrainian officials said, however, that there was no expectation of a major breakthrough.

The fact that the next round of talks will take place in person, however, for the first time since a tense meeting between the two countries’ foreign ministers on March 10, signals a change in tone as Russia has struggled to move forward. and gain territory.