Dollar accompanies exterior and falls this morning

The dollar lost ground against the real in early trading on Wednesday (20), in line with the broad weakness of the US currency abroad as US sovereign bond yields paused a recent rally.

At 9:05 am (GMT), the spot dollar retreated 0.23%, to R$ 4.6561 on sale.

On B3, at 9:05 am (GMT), the first-maturity dollar futures contract dropped 0.30% to R$4.6675.

The US spot currency closed the last session up 0.36%, at R$ 4.6667 on sale

The day before, the commercial dollar rose 0.43%, quoted at R$4.6680. The US currency gained strength against the main world currencies on the growing expectation of the markets that the tightening in credit rates underway in the United States will be even tougher than most analysts expected.

The Ibovespa dropped 0.55% to 115,056 points. The 3.19% drop by Vale weighed on the benchmark stock market index. The Stock Exchange’s result was also influenced by the negative performance of the country’s main banks.

BB, Itaú and Bradesco fell by 3.53%, 1.77% and 1.30%, respectively.

In the Brazilian interest rate market, the DI (Interbank Deposits) rate for January 2023 dropped slightly for the second day in a row. Contracts with longer maturities, however, rose again. The DI rate is negotiated between banks, but reflects the credit sector’s expectations regarding the country’s monetary policy.

​In New York, the benchmark S&P 500 index rose 1.61% as the market weighed in on first-quarter corporate earnings. The Dow Jones gained 1.45%, while the technology-focused market tracked by the Nasdaq indicator gained 2.15%.

European stocks closed in the red after the Easter break. London, Paris and Frankfurt dropped 0.20%, 0.83%, 0.07%, in that order.

The return to post-holiday talks was penalized by heightened tensions in Ukraine after Russia began the second phase of its offensive.

with Reuters