Dollar closes below R$5.40 for first time since February after Fed decision to keep interest rates low
RIO DE JANEIRO, BRAZIL – In a day of optimism in the international market, the dollar dropped significantly and closed on Wednesday, April 28, below R$5.40 for the first time since February. The stock market, on the other hand, recovered from the drop on Tuesday, April 27, and closed at its highest level in almost two weeks.
On Wednesday, April 28, the commercial dollar closed at R$5.362, down R$0.10 (-1.82%). The U.S. currency traded down throughout the session, but intensified the slump over the afternoon, after the U.S. Federal Reserve (similar to a Central Bank) released the minutes of its past 2 days’ meetings, when it decided not to increase interest rates.
At its lowest price since February 2nd, when it closed at R$5.355, the currency accumulated a drop of 4.7% in April. In the year to date, the dollar has accumulated a high of 3.33%. As of yesterday, the Real had the best performance among the main currencies of emerging countries.
The euphoria in the exchange rate extended to the stock market. The B3, Ibovespa index, closed Wednesday at 121.052 points, up 1.39%. In addition to the repercussion of the Fed’s decision, the indicator was boosted by bank shares, after the release of the balance sheet of financial institutions.
On Wednesday, the Federal Reserve president, Jerome Powell, confirmed that the body will continue to give “powerful support” to the American economy, maintaining the world’s largest economy’s basic interest rates between 0% and 0.25% a year. Powell indicated that the Fed will not be raising rates anytime soon, despite stronger-than-expected inflation and job recovery data.
Although Powell’s statement benefited emerging countries, such as Brazil, it was not so well received in the American stock markets. The three main Wall Street indexes closed lower on Wednesday.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.90%
167,830.27
+0.90%
64,193.66
+0.41%
11,241.32
+0.49%
2,874,493
-0.59%
2,453.87
-0.30%
57,612.45
+1.33%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 167,830.27 | +0.90% | +21.85% | 166,334.86 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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