Dollar closes below BRL 5 for the first time in ten months

The commercial dollar ended this Wednesday (12) sold at R$ 4.942, down R$ 0.065 (-1.31%). The currency operated in decline throughout the session. At the low of the day, around 11:15 am, it reached R$4.91, but dropped to R$4.95 in the afternoon because of investors who took advantage of the lower price to buy dollars.

The US currency is at its lowest level since June 9 of last year, when it closed at R$4.91. With today’s fall, the currency drops 2.51% in April and retreats 6.4% in 2023.

The stock market had another day of gains. Up for the third consecutive session, the Ibovespa index, from B3, closed at 106,890 points, up 0.64%. The indicator rose almost 2% around 2:20 pm, but slowed down influenced by the external market. The Ibovespa is at its highest level since February 23rd.

Internal and external factors contributed to the fall of the dollar and the rise of the stock market. In Brazil, investors continue to reflect the slowdown in official inflation in March, which increases the chances of the Central Bank (BC) starting to reduce the Selic rate (basic interest rates) at the beginning of the second half. The expectation of lower interest rates encourages investment in the stock exchange, an investment with greater risk than government bonds.

The international market also reacted well to the deceleration in consumer inflation, which dropped to 0.1% in March, against 0.4% in February. The data reinforced the expectation that the high interest rate cycle in the United States is close to the end. However, the dollar gained strength and stock markets slowed down in the late afternoon, with the release of the minutes of the last meeting of the Federal Reserve (Fed, North American Central Bank), which indicated that inflation in the largest economy on the planet is still not contained.

Now, the Brazil Agency it is giving the articles about the closure of the financial market only on extraordinary days. The dollar rate and the stock exchange level are no longer reported on a daily basis.