See the dollar exchange rate today – 05/18/2023 – Market

The dollar opened higher on Thursday (18), with investors following the course of the fiscal framework in Congress and negotiations on raising the debt ceiling in the United States.

At 9:06 am (Brasília time), the spot commercial dollar advanced 0.46%, to R$ 4.9572 in the sale. On B3, at 9:06 am (Brasília time), the first contract dollar futures contract rose 0.4%, to R$ 4.9700.

On Wednesday (18), the Chamber of Deputies of Brazil approved the urgency regime for the new fiscal rule, giving priority to the project. The expectation is that the text will be appreciated next week.

The rapporteur for the framework in the Chamber, Cláudio Cajado, reduced the list of expenses that are exceptions to the rule and the creation of adjustment triggers in case the government accounts come in below expectations – such as a ban on public tenders or readjustments for civil servants.

In the US, President Joe Biden and top US Congressional Republican Kevin McCarthy have underscored their determination to reach an agreement soon to raise the US$31.4 trillion debt ceiling. ) the federal government and avoid a default.

After months of stalemate, the Democratic president and the Republican speaker of the House of Representatives agreed on Tuesday to directly negotiate a deal. A pact needs to be reached and approved by both houses of Congress before the federal government runs out of money to pay its bills as early as June 1.

The Brazilian stock exchange closed higher on Wednesday, driven by Vale shares, which benefited from iron ore futures contracts.

The dollar, on the other hand, started the session rising, but started to fall in the beginning of the afternoon, amid negotiations on raising the debt ceiling in the United States.

The Ibovespa rose 1.17% to 109,459 points, while the dollar fell 0.14% to R$4.935.

Vale’s shares rose 3.41% and were among the most traded of the session, supporting the Brazilian Exchange, after iron ore futures contracts on the Dalian and Singapore Exchanges rose to the highest level in nearly three weeks.

Increases in B3 (2.03%) and Banco do Brasil (0.16%) also helped the Ibovespa to close in the positive. Azul (14.89%), Renner (9.66%) and Gol (9.02%) had the biggest gains in the session.

On the other hand, Petrobras registered losses since the beginning of the day and closed with a drop of 2.24% in preferred shares and 0.51% in common shares, even with the increase in oil prices abroad, after a day of gains after the announcement of its new pricing policy.

Future long-term interest rates in the country continued to rise slightly. Contracts maturing in January 2025 increased from 11.70% to 11.72%, while those for 2026 increased from 11.19% to 11.21%. In the short term, those maturing in 2024 remained stable at 11.30%.

In the US, indices rose. The country’s regional banks are rallying after their stocks have melted in recent weeks amid cautious market optimism about a potential breakthrough in Washington’s stalemate over the country’s debt limit.

US President Joe Biden and top Republican congressional leader Kevin McCarthy on Wednesday underscored their determination to reach an agreement soon to raise the debt ceiling and avoid a catastrophic default.

As a result, Western Alliance rose 10.42% this Wednesday, while PacWest Bancorp, another important regional bank in the country, rose 21.44%

The KBW Regional Banking Index, an index that measures the performance of US regional banks, was up 7.28%, after losing 1.87% in the previous session.

The Dow Jones, S&P 500 and Nasdaq rose 1.24%, 1.19% and 1.28%, respectively. The gains marked the biggest one-day percentage rise for each of the three major indexes since May 5.

With Reuters