Dollar drops to R$ 4.86 after approval of tax reform

The commercial dollar ended this Friday (7) sold at R$ 4.866, with a decrease of R$ 0.064 (1.3%). The quotation even opened at a slight high, but reversed the movement and began to plummet in the first minutes of trading. At the low of the day, around 2:30 pm, the currency reached R$ 4.85.

With today’s performance, the currency rose 1.59% in July. In 2023, however, the dollar is down 7.84%.

The stock market also had a day of euphoria. The B3 Ibovespa index closed at 118,898 points, up 1.25%. The indicator traded high throughout the day. Despite starting the week with losses, the stock exchange ended the week with a gain of 0.84%.

Both internal and external factors boosted the market on Friday. In Brazil, investors reacted with optimism in relation to the approval of the first phase of the tax reform in the Chamber. Abroad, data on the job market in the United States brought international relief.

According to data released on Thursday, hiring of workers in the private sector in the United States soared in June. However, figures presented this Friday that include other segments of the economy (except the agricultural sector), showed that job openings were lower than expected.

The numbers reduced expectations that the Federal Reserve (Fed, US Central Bank) will raise interest rates in the largest economy on the planet later this year. Lower interest rates in advanced economies stimulate the flow of capital to emerging countries, such as Brazil.

Agência Brasil is only broadcasting articles about the closure of the financial market on extraordinary days. The dollar rate and the stock exchange level are no longer reported on a daily basis.

* With information from Reuters