On a day of nervousness in the international market, the dollar had another rising session and reached its highest value in almost six months. The stock market retreated after two consecutive increases, also influenced by the external market.
The commercial dollar ended this Monday (1st) selling at R$5.059, with an appreciation of R$0.044 (+0.87%). The price operated higher throughout the session. At the high of the day, around 4pm, it reached R$5.07.
The US currency is at its highest level since October 13 last year. In the first quarter, the currency had gained 3.34%, surpassing the R$5 barrier last Thursday (28).
In the stock market, the day was also tense. The Ibovespa index, from B3, closed the day at 126,990 points, with a drop of 0.87%. Bank shares pulled back.
The dollar rose across the planet following the announcement that industrial activity in the United States was above 50 points for the first time since September 2022. The 50-point barrier separates expansion and shrinkage.
The heating up of the North American economy puts pressure on the dollar because it reduces the chances of the Federal Reserve (Fed, North American Central Bank) cutting interest rates in the largest economy on the planet three times this year. The chances of the Fed cutting interest rates just twice in 2024 have increased, indicating high rates for longer.
High interest rates in advanced economies encourage the flight of resources from emerging countries, such as Brazil. In the case of the United States, higher rates increase the profitability of US Treasury bonds, considered the safest investments on the planet. The increase in interest in these securities attracts financial resources from all over the planet, putting pressure on the dollar and stock markets.
*With information from Reuters
