Dollar falls to R$ 5.11 and Ibovespa advances, with help from Fed and Moody’s

The dollar closed sharply lower against the real this Thursday, 2nd, with prices reacting, on the return of the holiday, to monetary policy messages from the Federal Reserve (Fed) and to Moody’s decision to improve the credit rating outlook. from Brazil.

The North American spot currency closed the day at R$5.1135 on sale, down 1.53%. It was the biggest percentage drop in a single day since August 23 of last year, when it dropped 1.63%. On November 3 last year, the dollar had also fallen 1.53%. See the dollar exchange rate today.

Meanwhile, the Brazilian stock market reference index, Ibovespa, rose 1.1%, to 127,313.04 points, according to preliminary data. At the day’s high, it reached 127,670.16 points.

Scenario

In general, the messages from the Fed and Jerome Powell, head of the US Central Bank, were positively evaluated and brought some relief to the yield curve. fees North American market, which experienced a sharp drop on Wednesday, in a movement that was reflected in the Brazilian market this Thursday.

The movement was intensified by the news that Moody’s reaffirmed Brazil’s credit risk rating at Ba2, but changed the country’s outlook from “stable” to “positive”, citing a more robust GDP and continued – albeit gradual – progress. towards fiscal consolidation.

In addition to the maintenance of interest rates in the USA and Moody’s decision, Anderson Silva, head of variable income and partner at GT Capital, cites the earnings season that begins here in Brazil with some of the main Ibovesoa companies presenting results slightly below expectations , as expected or even above what the market expected”, helping the shares.

“Furthermore, with greater control over our inflation thanks to well-aimed maneuvers by the Central Bank, we see future interest rate curves cooling down and the dollar decreasing its upward bias this week”, he adds.