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Relief in the international market and the dollar falls.

Dollar falls to R$5.11 with inflation data in Brazil and the USA.

Stock market rises 1.51%, with relief in the international market and the dollar falls.

On a refreshing day in the financial market, the dollar approached R$5.10 and fell to its lowest value in 15 days.

After three consecutive falls, the stock market had a powerful rise and closed above 126 thousand points.

The  commercial dollar  ended this Friday (26) sold at R$ 5.116, with a drop of R$ 0.046 (-0.89%). The price began the day flat , but began to plummet soon after the flatness of the markets in the United States. At the low of the day, around 3:20 pm, the price approached R$5.10.

The North American currency fell to its lowest level since the 11th, when it closed at R$5.09. Despite today’s drop, the rate accumulates an increase of 2.01% in April and 5.42% in 2024.

In the  stock market , the day was also marked by refreshment . The Ibovespa index, from B3, closed at 126,526 points, an increase of 1.51%. The indicator was driven by international stock exchanges and Petrobras’ decision to share 50% of the extraordinary dividends from the 2023 internship .

Factors that contributed to the market.

Both domestic and external factors contributed to the calm day in the financial market. In the United States, the slowdown in Gross Domestic Income (GDP) in the first quarter and the release of consumer inflation in March increased the chances that the Federal Reserve ( Fed, North American Middle Bank ) will begin to cut interest rates in September.

In recent days, the chances have increased that the Fed will only start reducing rates in the largest economy on the planet in 2025. This Friday, it was announced that inflation in March in the United States was 0.3%, within expectations.

In Brazil, the preview of official inflation by the Broad Consumer Price Index -15 (IPCA-15) fell to 0.21% in April, below expectations. The drop in transport prices offset the rise in food prices .

The behavior of  inflation  increased the chances of the Brazilian Middle Bank reducing the Selic rate (the economy’s basic interest rate) by 0.5 percentage points in May. Lower interest rates stimulate stock markets because they encourage the transmigration of resources from fixed income investments to stocks.

Source: agenciabrasil

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