The dollar started the week with little change, hovering around two-year lows below R$4.70 on Monday (4) marked by the prospect of new sanctions against Russia and local caution due to the strike by Central Bank servers.
At 9:05 am (GMT), the spot dollar advanced 0.13%, at R$ 4.6730 on sale.
On B3, at 9:05 am (GMT), the first-maturity dollar futures contract rose 0.26% to R$4.7035.
The spot currency closed the last session down 2.02%, at R$4.6668 on sale, the biggest daily devaluation since December 30, 2021 (-2.12%) and the lowest closing price since March 10, 2021. 2020 (BRL 4.6457).
On Friday (1st), the American currency fell 1.99%, to R$4.6660, the lowest price since the R$4.6470 of March 10, 2020, the eve of the date on which the WHO (Organization of Health) declared the Covid-19 pandemic. The currency also ended the first quarter of 2022 with a drop of nearly 15%, the biggest quarterly decline since June 2009.
Also on Friday, the Brazilian Stock Exchange rose 1.31% to 121,570 points. The rise took the Ibovespa to its highest score in eight months.
The rise in the stock market and the fall in the dollar are mainly attributed to the growth of foreign investors’ interest in Brazil. But an error by B3, the Brazilian Stock Exchange, raised questions about the size of foreign appetite for assets traded on the Brazilian equity market.
This Friday, B3 announced a review that dropped by R$27 billion the accumulated balance of foreign capital entering the country’s stock market in 2022. As a result, this year’s accumulated balance dropped from R$91 billion to approximately R$64 billion . The error generated a series of reactions on social media.
Most publications criticize B3’s failure in relation to the transparency of the numbers, pointing out the lack of confidence in the company’s upcoming disclosures, as well as the mislead by small investors.
In the United States, futures indices were slightly negative on expectations of interest rate hikes by the Fed (Federal Reserve, the American central bank) as global risks and inflation persist.
JP Morgan Chairman Jamie Dimon said in an annual letter to investors on Monday that the US economy is facing unprecedented risks that set it up for dramatic upheavals.
While offering an optimistic view on the health of the US economy, Dimon warned that the war in Ukraine could collide with rising inflation and delay economic recovery from the pandemic, as well as altering global alliances for decades to come.
“While it is possible and hopeful that all these events will have peaceful resolutions, we must prepare for possible negative outcomes,” he said.
Pressure for Russia to be punished for war crimes escalated this weekend with the discovery of more than 400 civilian corpses lying on the streets and in graves in cities in the Kiev region.
The biggest massacre took place in Butcha, about 30km from the capital, where the city says it found the bodies of 280 people.
The European Union is considering new sanctions against Russia, which is one of the main global exporters of oil and natural gas.
On the morning of this Monday, the barrel of Brent oil rose 0.60%, to US$ 105.02 (R$ 493.36).
with Reuters
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