Dollar exceeds R$ 5.30; see the quote today – 03/24/2023 – Market

The dollar advanced this Friday (24th), easily surpassing the mark of R$ 5.30, with the return of risk aversion abroad and the increase of tensions between the Brazilian government and the Central Bank.

At 9:22 am (Brasília time), the spot dollar advanced 0.77%, at R$ 5.3303 on sale. The coin was heading for a weekly high of more than 1%.

On B3, at 9:22 am (Brasília time), the first contract dollar futures contract rose 0.61%, to R$ 5.3390.

This movement was in line with the strong appreciation of the dollar abroad, where an index that compares the currency to six major pairs rose by almost 0.7%.

Global sentiment remained fragile after turmoil in the US and European banking sectors over the past two weeks was reminiscent of the 2008 global financial crisis.

The fact that several central banks in developed countries have raised interest rates in recent days even in the face of financial risks contributed to caution, said XP in a morning note, also citing market disappointment with readings of PMIs in Europe.

Meanwhile, “institutional clashes between the Lula government and the Central Bank should help in the search for protection of the US currency” this Friday, said Jefferson Rugik, from Correparti Corretora.

On Thursday (23), President Luiz Inácio Lula da Silva stated that the Central Bank should pay the price for the country’s interest rates, returning to criticize the current Selic level a day after the Central Bank’s Copom (Monetary Policy Committee) decide to keep the rate at 13.75% per annum.

The Central Bank did not present a concrete sign about an eventual monetary easing ahead, adopting a tougher tone than expected, contrary to expectations in the market and in the government for an indication about the moment when it could initiate the cuts in the basic interest rate.