Dollar rises and closes at R$ 5.12, pressured by domestic and external political factors. Stock market falls but accumulates weekly gains.
Brazil’s foreign exchange market registered a volatile day this Friday, with the dollar ending the session quoted at R$ 5.1254, an increase of 0.44% in the spot market. This movement followed the trend of strengthening of the American currency in the global scenario.
The main driver of the currency’s rise was the domestic political landscape, which became more tense at the end of the trading session. The decision by Minister Edson Fachin, president of the Supreme Federal Court (STF), to grant a 24-hour deadline for Minister André Mendonça to lift the secrecy on investigative documents related to the Master case added an element of uncertainty.
Volatility in Foreign Exchange and Impact on the Stock Market
The international dollar, measured by the DXY index, which compares the American currency to a basket of six other major currencies, operated with a slight increase of 0.08%. This global movement, however, was overshadowed by domestic political concerns that dictated the pace of the Brazilian foreign exchange market.
In contrast, the Brazilian stock market, the Ibovespa, felt the negative impact. The index closed the day down 0.56%, losing 1,061.70 points and ending at 187,206.89 points. This drop, although modest, reflects a certain market nervousness regarding political developments.
Wall Street Recovery and the Oil Scenario
In the United States, the main Wall Street indices showed a recovery this Friday. Relief in oil prices, which retreated after a week of strong appreciation, contributed to this movement.
After a week of strong appreciation, oil prices retreated on Friday (11). The movement is presented as a possible partial correction of the gains accumulated in the period, amid developments in the Middle East conflict.
WTI crude for October fell 2.3%, ending at US$ 100.05 per barrel. Brent for November fell 2.81%, ending the session at US$ 104.61. Despite the day’s declines, both contracts accumulated significant weekly gains, with WTI rising 9.37% and Brent, 8.65%.
Outlook for the Week
Despite the dollar’s rise on the day, the real managed to accumulate a slight depreciation of 0.11% against the American currency over the week. The Ibovespa, on the other hand, showed resilience and closed the fourth consecutive week in positive territory, with a weekly gain of 1.11%. The market remains attentive to future political developments and signals from the Federal Reserve (Fed) regarding interest rate policy, which could influence global financial assets in the coming weeks.
