Dollar rises and Ibovespa falls, following movement in the US market

After three sessions of decline, the dollar in cash closed Wednesday, 24th, rising against the real, in line with the advance of the US currency abroad and the rise in Treasuries rates – that is, the yield of United States government bonds.

The spot dollar closed the day at R$5.1492 on sale, up 0.40%. In April, the US currency accumulated an increase of 2.66%. See the dollar exchange rate today.

Meanwhile, in the stock market, the Ibovespa closed lower, but with Vale’s advance mitigating the effect of the movement in North American Treasury bonds. The Brazilian stock market reference index, Ibovespa fell 0.33%, to 124,740.69 points. At the day’s high, the Ibovespa reached 125,472.55 points. At minimum, at 124,555.92 points. The financial volume in the trading session totaled R$20.09 billion.

Scenario

The upward movement of the dollar intensified in Brazil, in the wake of rising Treasury yields. In addition to the upward pressure brought from abroad, the market was attentive to the speech by the director of Monetary Policy at the Central Bank, Gabriel Galípolo, during an event in São Paulo, about the pursuit of the 3% inflation target.

“From the point of view of the director of Monetary Policy, this is not a topic… The target is not to be discussed, it is to be pursued”, he stated, reinforcing that the discussion on the viability of the inflation target is not carried out in the Copom and is a “non-topic”.

Galípolo also pointed out that the floating exchange rate regime in Brazil has absorbed changes in asset pricing — a phenomenon that occurs in the wake of the expectation that the Federal Reserve will promote fewer interest cuts in 2024. According to the director, the moment appears to be “predominantly appreciation of the dollar”.