See the dollar exchange rate today – 05/26/2023 – Market

The dollar opened in decline this Friday (26) after a day of gains with inflation data in Brazil and with negotiations on the debt ceiling in the United States still in the focus of the market.

Investors await this morning the release of the US PCE inflation index, which is followed by the Fed (Federal Reserve, the US BC) for making its decision on US interest rates.

At 9:08 am (Brasília time), the spot dollar retreated 0.52%, to 5.0088 reais on sale. On the B3, at 9:08 am (Brasília time), the first contract dollar futures contract fell 0.6%, at 5.0110 reais.

The Brazilian Stock Exchange broke a sequence of losses and recorded a rise this Thursday (25) supported by the release of the IPCA-15 (National Consumer Price Index – Extended 15) for May, which came in below expectations and surprised the market.

The dollar also rose against the real and closed again above R$ 5.00, with negotiations on the US debt ceiling still on the radar.

The Ibovespa rose 1.15%, to 110,054 points, while the dollar rose 1.63%, to R$5.035.

The index was supported by rises in the banking sector, such as Itaú (2.80%) and Bradesco (3.47%), which were among the most traded securities in the session.

Stocks in retailers and builders, which are more sensitive to interest rates, also gained for the session. MRV rose 10.21%, recording one of the highest gains of the day, while Via and Magalu rose 7.76% and 3.30%, respectively.

The rises made the Ibovespa close in the positive even with falls by Vale (0.30%) and Petrobras (0.90%).

The interest rate futures markets also registered a decline. Contracts maturing in January 2024 increased from 13.27% to 13.18%, and those for 2025 fell from 11.62% to 11.47%.

In the United States, the focus remains on negotiations on the debt ceiling.

A new round of talks took place on Thursday, and Reuters reported that US President Joe Biden and top Republican lawmaker Kevin McCarthy are getting closer to a debt ceiling deal, with divisions over just $70 billion (R$349.8 billion) in discretionary spending, citing a person familiar with the talks.

As a result, the US currency rose in Brazil and abroad. The DXY index, which measures the performance of the dollar against other strong currencies, rose 0.33%

US stock indices had mixed directions. Backed by tech companies, the Nasdaq and S&P 500 rose 1.71% and 0.88%, respectively.

The day’s bright spot was Nvidia stock, which soared 24.34% after the company projected quarterly revenue 50% higher than estimates and announced an increase in the supply of chips to meet demand from artificial intelligence initiatives.

The Dow Jones, however, which does not include big tech trades, fell 0.11%.

In Europe, pessimism regarding the US debt ceiling and fears of an economic slowdown dominated the market. Germany recorded a drop in GDP (Gross Domestic Product) for the second consecutive quarter and brought doubts about a possible recovery of the country.

The pan-European STOXX 600 index closed down 0.32% at 456.18 points, losing about 2.7% in three consecutive days, also knocked down by recent losses in luxury stocks.

With Reuters