Dollar falls with GDP above expectations; see quote today – 06/01/2023 – Market

The dollar opened in decline this Thursday (1st) with investors reflecting the approval in the United States House of Representatives of the bill that suspends the debt ceiling in order to avoid a catastrophic default, still waiting for an important report of US government jobs.

In Brazil, the market digested stronger than expected data on GDP (Gross Domestic Product) for the first quarter.

At 9:03 am (Brasília time), the spot dollar retreated 0.70%, to R$ 5.0365 in the sale. On B3, at 9:03 am (Brasília time), the first contract dollar futures contract fell 0.4%, to R$ 5.0650.

The text that suspends the limit of the American debt of US$ 31.4 trillion (R$ 159.9 trillion) was approved on Wednesday with the support of the majority of Democrats and Republicans and will now go to the Senate, which must enact the measure before next Monday (5), the final deadline established by the Treasury for the payment of its debts.

The Brazilian stock exchange closed down this Wednesday (31) for the third consecutive trading session, but ended the month of May with gains after the approval of the fiscal framework in the Chamber and better-than-expected inflation data.

The dollar rose on the day, with expectations about the US debt ceiling and decisions on interest rates in the US and Brazil, and also accumulates appreciation in the month.

This Wednesday, the Ibovespa closed down 0.57%, to 108,335.07 points. In May, however, the index registers an increase of 3.74%, marking the second consecutive month of gains.

The dollar rose 0.63% on the day, closing at R$5.074, with an appreciation of 1.70% in May.

This week, the fall of the Ibovespa was driven mainly by shares of Petrobras and Vale, sensitive to falls in futures contracts for iron ore and oil. The mining company fell 0.73%, while the oil company lost 1.02%.

The biggest rise of the day was CVC, which soared 13.42% with the market awaiting the announcement of the company’s new chief executive, after the resignation of the previous boss.

BRF rose 11.83% after Saudi Arabian Salic and Marfrig committed to an investment of up to R$4.5 billion in the company, ranking among the highest rises of the session and recovering after sharp falls in recent trading sessions.

Marfrig, on the other hand, also had gains, rising 6.24%, also favored by a possible future capital increase of at least R$ 1.5 billion.

In the exchange rate, the dollar recorded significant declines against the real throughout the month, mainly with the processing of the fiscal framework in the Chamber and the good performance of the Ibovespa, which attracted foreign funds to the country. The American currency closed below BRL 4.90 on the 15th, reaching the lowest value since June 2022.

In the accumulated result for the month, however, the dollar rose, especially due to expectations of interest rate differentials between Brazil and the United States.

With Reuters