Investors’ search for protection before the Copom’s decision on interest rates and the rise of the dollar abroad caused the US currency to close on Wednesday on a high in Brazil, again close to R$ 5.10.
The spot dollar closed the day at R$5.0914 on sale, up 0.46%. In May, however, the currency accumulated a drop of 1.95%. On B3, the first-month dollar futures contract rose 0.29%, to R$5.1010 on sale.
The expectation surrounding the decision by the Central Bank’s Monetary Policy Committee (Copom), scheduled for early evening, permeated business throughout the day.
The Ibovespa also closed in the black this Wednesday, helped by the surge in BRF shares after a quarterly result above expectations, in a session marked by a battery of corporate balance sheets and expectations for the Central Bank’s monetary policy decision.
The reference index for the Brazilian stock market, Ibovespa rose 0.19%, to 129,454.95 points, with the weak agenda abroad reinforcing attention to Brazil, including the flood situation in Rio Grande do Sul.
The financial volume in the trading session totaled R$18.56 billion before final adjustments.
In the DIs (Interbank Deposits) market, most investors took a position that the collegiate will cut the Selic by just 25 basis points, but bets on a 50 basis point cut were not negligible. Currently, Selic is at 10.75% per year.
Amid doubts, some investors preferred to increase long positions in the dollar (in order to increase prices) before the Copom decision.
Abroad, the Dow Jones index closed higher, extending its streak of gains to six consecutive sessions, with investors continuing to bet on the support of United States monetary policy.
Wall Street’s other benchmarks cooled a bit as momentum stalled and Treasury yields rose on auction day for 10-year notes. The S&P 500 ended essentially flat after four sessions of gains, and the Nasdaq technology index fell for the second straight session.
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