Dollar approaches R$ 5.20 on a day of tension abroad

After days of truce, the financial market once again faced moments of nervousness this Tuesday (30). The dollar rose sharply and approached R$5.20. The stock market fell more than 1% and lost 126 thousand points.

The commercial dollar ended the day selling at R$5.193, up R$0.076 (+1.52%). The price rose all day and closed at the day’s high, with investors buying dollars in anticipation of the Federal Reserve (Fed, North American Central Bank) meeting, which will take place this Wednesday (1st).

With today’s performance, the US currency closed April with an increase of 3.53%. The currency accumulates appreciation of 7.01% in 2024.

In the stock market, the day was also tense. B3’s Ibovespa index closed at 125,924 points, down 1.12%. The indicator closed the month with a drop of 1.7%.

Abroad, there was a run on US Treasury bonds, considered the safest investments in the world, on the eve of the Fed meeting. This migration stimulates the flight of resources from emerging countries like Brazil, putting pressure on the dollar and the stock market.

Investors are waiting for some indication, at this Wednesday’s meeting (1st), of when the Fed will start reducing interest rates in the largest economy on the planet. Part of the market believes that rates will start to fall in September. Another part, only in November.

In Brazil, job creation numbers in March put pressure on the stock market. Although the increase in jobs is good news for the economy in general, the phenomenon causes tensions in the financial market because it increases the chances of the Brazilian Central Bank reducing the pace of cuts in the Selic Rate (the economy’s basic interest rate).

Higher than expected interest rates encourage the migration of investments from the stock market to fixed income investments, such as government bonds.

*With information from Reuters