Dollar opens in fall; see quote today – 07/13/2023 – Market

The dollar opened in decline this Thursday (13), after registering a drop against the real driven by better-than-expected inflation data in the United States.

Investors reflected this morning on indicators on rising prices in the euro zone and await new US inflation data, this time on producer prices. The market is still awaiting pronouncements from Fed officials (Federal Reserve, the US central bank)

At 9:21 am (Brasília time), the spot dollar retreated 0.10%, to R$ 4.8126 in the sale. On B3, at 9:21 am (Brasília time), the first contract dollar futures contract fell 0.12%, to R$ 4.8290.

On Wednesday (12), the dollar recorded yet another falling session against the real after the release of inflation data in the United States, which came in below expectations and indicated that the Fed (Federal Reserve, the American central bank) may anticipate the end of the interest scale in the country. The American currency retreated 0.86%, quoted at R$ 4.819.

On the Brazilian Stock Exchange, the Ibovespa had a slight rise of 0.09%, closing practically stable at 117,666 points. The index was supported by good performances by Vale, PetroRio and JBS, but pressured lows by companies such as GPA and Azul.

Well-behaved inflation reduces the risk that the Fed will maintain tight monetary policy for much longer. The perspective that interest rates should not rise much more, and eventually may even start to fall a little further ahead, encourages financial agents, who are starting to revise projected profits for companies with shares traded on the Exchange upwards.

The dollar also dropped abroad. The DXY index, which measures the performance of the US currency against other major currencies, fell 1.15%.

In Brazil, interest rate contracts maturing in January 2024 remained stable, while longer curves rose. Interest rates for 2025 rose from 10.77% to 10.83%, while those for 2026 went from 10.10% to 10.17%.

On the Stock Exchange, the Ibovespa rose supported by the outside world and by gains from Vale (0.71%) and PetroRio (1.91%), which were among the most traded in the session, driven by the rise in commodities abroad.

Leading the highs of the day on the B3, the shares of JBS appreciated by 9.05%, after the refrigerator announced a double listing of shares, in Brazil and in the United States, aiming to expand its capacity to invest and grow with a lower cost of capital .

Significant declines in GPA and Azul, which recorded losses of 5.82% and 4.28%, respectively, put pressure on the index and limited Ibovespa gains in the session. The two companies are undergoing correction after strong increases in the last month.

In the United States, the day was high for stocks due to relief from American inflation – the S&P 500 recorded gains of 0.74%, the Nasdaq advanced 1.15% and the Dow Jones rose 0.25%.

With Reuters