Dollar drops to R$4.80 after Fed and risk agency decision

The commercial dollar ended this Wednesday (14) sold at R$ 4.807, with a decrease of R$ 0.056 (-1.14%). The quotation opened close to stability and even operated upwards after the decision of the Federal Reserve (Fed, North American Central Bank) to maintain basic interest rates in the United States between 5% and 5.25% per year. The currency, however, fell after the rating agency Standard & Poor’s (S&P) improve the outlook for the Brazilian public debt rating.

The quotation is at the lowest value since June 6 last year, when it closed at R$ 4.79. The currency accumulates a drop of 5.24% just this month and 8.96% in 2023.

In the stock market, the day was also one of optimism. The B3 Ibovespa index closed at 119,069 points, up 1.99%. The gauge, which was slowing towards the end of trading, soared after the release of the S&P statement.

In the early afternoon, the Fed had decided to maintain the basic interest rates of the largest economy on the planet, interrupting a cycle of highs that had extended since the beginning of 2022. The statement, however, eliminated expectations that the reductions will begin later this year and opened possibilities of new highs in case the North American inflation starts to grow again.

At first, the dollar rose, and stock markets fell after the Fed meeting. However, S&P’s decision to upgrade the outlook for Brazil’s debt rating, indicating it may upgrade the country’s rating over the next two years, boosted investor sentiment. The dollar began to have a strong drop, and the stock exchange recovered near the end of trading.

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

*With information from Reuters