Dollar closes down by 1.14%, quoted at R$ 5.114; Ibovespa rises

The commercial dollar closed today down 1.14%, quoted at R$ 5.114. The Ibovespa, the main index of the Brazilian Stock Exchange (B3), which brings together the most traded companies, closed up 1.91%, at 114,070.48 points, in reaction to yesterday’s decision by the Copom (Policy Committee Monetary) of the Central Bank.

After falling 1.01% to R$5.121, reached shortly after the opening of business, the US currency gained some strength throughout the morning and rose by 0.24% to R$5.186, before returning to operate steadily in the red in the afternoon.

Behind this drop, market participants pointed to the dollar’s weakness abroad, especially against emerging market currencies or exposed to commodities. Colombian and Mexican pesos, Peruvian sol, South African rand and Australian dollar – currencies with which the real maintains some correlation – rose between 0.3% and 0.9% against the US currency this afternoon.

The value of the dollar published daily by the press, including the UOL, refers to the commercial dollar (learn more by clicking here). For those who are going to travel and need to buy currency at exchange brokers, the value is much higher.

Ibovespa Index

The Ibovespa recorded an increase of 1.91%, to 114,070.48 points, this Thursday (22).

Yesterday, the Central Bank decided to maintain the Selic rate at 13.75% per year, interrupting an aggressive cycle of monetary tightening, but considered that it will not hesitate to resume interest rate hikes if the reduction in inflation does not take place as expected.

Lucas Carvalho, chief analyst at Toro Investimentos, told the Reuters news agency that local markets reacted positively to the Copom statement, with the Ibovespa benefiting from the interruption in the Selic increase and the inflow of resources into the São Paulo stock exchange – which requires the purchases of reais by foreign agents—thus providing support to the local exchange market.

*With information from the Reuters agency

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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