The dollar approached R$ 5 and reached its highest value in two months. The Brazilian Ibovespa index of the B3 closed this Monday (August 14th) at 116,810 points, with a decline of 1.06%. The last time the indicator had fallen ten times in a row was in February 1984, amid the Brazilian external debt crisis. The stock market has accumulated a 4.21% decline in August but has a 6.45% increase for the year.
In the foreign exchange market, the day was also tense. The commercial dollar ended the day sold at R$ 4.966, with an increase of R$ 0.062 (+1.25%), and reached its highest level since June 1st, when it closed at R$ 5. Rising for the second consecutive time, the US currency has a 4.99% increase in August but has dropped 5.95% in 2023.
A series of negative events put pressure on emerging countries. The disclosure that Country Garden, one of the largest Chinese developers, will delay the payment of a bond rekindled concerns about the world’s second-largest economy, the main global buyer of commodities (primary goods sold in the international market). In 2021, the default of the developer Evergrande caused turbulence for weeks among international investors. In the United States, the yields on ten-year US Treasury bonds, considered the safest investments on the planet, reached their highest level since November. High rates attract capital to the United States, putting upward pressure on the dollar worldwide. The release, last Friday (August 11th), that producer inflation in the largest global economy accelerated in July heightened pessimism among investors.
In addition to these events, several Latin American countries had a day of stress in the financial market, influenced by the results of the primary elections for the upcoming Argentine elections. The lead of the far-right candidate, Javier Milei, triggered a capital flight from the neighboring country, causing the Argentine Central Bank to devalue the peso by 18% and raise the basic interest rate from 97% to 118% per year. The crisis affected various markets across the continent.
Plataforma with Agência Brasil
