On a day of euphoria in the international market, the dollar closed below R$5.10 and fell to its lowest value in almost three months. The stock market surpassed 114 thousand points and reached its highest level since the beginning of November. The commercial dollar closed this Wednesday (25) sold at R$5.08, with a drop of R$0.062 (-1.22%). The price opened close to stability, but began to plummet after the opening of the North American market. At the lowest point of the day, around 4:15 pm, it reached R$5.07. The North American currency is at its lowest value since November 4, when it was at R$5.05. The currency has accumulated a drop of 2.46% this week alone. In 2023, the decline reaches 3.79%. On the stock market, the day was also marked by euphoria. The Ibovespa index, from B3, closed at 114,270 points, up 1.1%. The indicator is at its highest level since November 8, when it was still reflecting the results of the presidential election. Despite the municipal holiday for São Paulo’s anniversary, the financial market operated normally this Wednesday. Trading was influenced by the relief in the external scenario, with foreign investors transferring resources to emerging countries, such as Brazil, with the prospect that the Federal Reserve (Fed, the US Central Bank) will slow down interest rate hikes. In recent days, the drop in inflation in the United States and the release of weaker-than-expected economic data have increased bets that the Fed will raise the base interest rate of the world’s largest economy by 0.25 percentage points at next week’s meeting, after four consecutive hikes of 0.5 points each. The slowdown in the pace of monetary tightening in the United States favors emerging countries. Another factor that has benefited Brazil is the expectation of an appreciation in the value of commodities (primary goods with international prices) after the end of the Chinese government’s restrictions against COVID-19.

Source: Canal Rural