Dollar falls to R$ 5.18 and reaches the lowest value in almost three weeks

On a day of domestic and foreign relief, the dollar fell below R$ 5.20 and reached the lowest value in almost three weeks. The stock market had a strong rise and reached the highest level in two months.

The commercial dollar ended this Wednesday (11) sold at R$ 5.181, with a decrease of R$ 0.021 (-0.4%). The price started the day on a high, reaching R$ 5.23 just before 10 am, slowed down during the morning and started to fall sharply throughout the afternoon, after the Minister of Planning, Simone Tebet, announced the secretariat.

The US currency is at its lowest value since December 23, when it was at R$5.16. In the first 11 days of 2023, the currency has accumulated a drop of 1.88%.

In the stock market, the day was marked by euphoria. The B3 Ibovespa index closed at 112,517 points, up 1.53%. With gains for the sixth consecutive session, the indicator reached the highest level since November 14th.

Domestic and external factors contributed to the well-being of the market this Wednesday. In Brazil, investors welcomed the nominations of the new secretaries of the Ministry of Planning, which indicate their commitment to public accounts. During the ceremony, the minister herself announced that the Federal Budget Secretariat will veto measures that violate the Fiscal Responsibility Law.

In the international market, investors were optimistic with the release of consumer inflation in the United States in December, which will take place tomorrow (12). If prices rise less than expected, the chances increase that the Federal Reserve (Fed, US Central Bank) will raise interest rates in the largest economy on the planet by just 0.25 percentage points at the next meeting, on January 25 and 26 .

* with information from Reuters

Translated to english by RJ983

From Brazil, by EBC News