Dollar falls to R$ 4.78 and approaches the low of the year

The commercial dollar ended this Wednesday (19) sold at R$ 4.786, down R$ 0.023 (-0.48%). The price started the day in a slight high, but reversed the movement and started to fall after the opening of the North American market, until closing close to the low of the day.

Falling after three consecutive days of increases, the US currency is approaching the lowest price of the year, recorded on June 26. That day, the currency ended up sold at R$4.767. The dollar accumulates a drop of 0.08% in the month and retreats 9.36% in 2023.

The euphoria in the foreign exchange market was not repeated in the stock market. The B3 Ibovespa index closed at 117,552 points, down 0.25%. The indicator dropped 1% at 1 pm. Despite a recovery during the afternoon, the stock market failed to reverse the decline.

The market was influenced by both domestic and external factors. Even with the possibility of the Central Bank (BC) reducing the Selic rate (the economy’s basic interest rate) at the next meeting of the Monetary Policy Committee (Copom), in early August, Brazilian interest rates remain high and continue to attract foreign capital.

Abroad, the release of lower-than-expected inflation rates in the United States and other advanced economies reduces the pressure for the Central Banks of these countries to raise interest rates. Next week, the Federal Reserve (Fed, US Central Bank) decides the interests of the largest economy on the planet. The market is betting on an increase of 0.25 percentage points, which would be the last of the upward cycle that began in 2022.

A 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