© Reuters. Sao Paulo stock market continues to rise with dollar below 5 reais
Sao Paulo, Apr 12 (EFE) of the five reais, according to the data at the end of the session.
The Brazilian stock market reflected for the second consecutive day the favorable data released the day before regarding inflation.
Inflation in Brazil continues with a downward trend and was located last March at 4.65% interannual compared to 5.60% registered the previous month, as reported on Tuesday by the government statistics center.
The rise in prices accumulated in twelve months has gradually slowed down in the largest power in Latin America since April 2022, when it reached a maximum of 12.1%, reaching its lowest level since January 2021 last March ( 4.56%).
This situation, added to the reopening of the Chinese market and also positive inflation data in the United States, also caused a collapse of the dollar, which for the first time since last June is operating below the symbolic bar of five reais for the exchange rate.
This Wednesday, in the commercial exchange rate, the main benchmark in the foreign exchange market in Brazil, the dollar depreciated 1.29% against the real, which ended the day at 4,941 reais for purchase and 4,942 for sale.
“The market’s reaction is being positive” and, “with the dollar falling against the real and the stock market rising at the same time, the DI -interbank deposit-, which is the expectation rate for future interest, is favorable for 2025, 2026 and 2027,” Raphael Vieira, director of Investments at the firm Arton Advisors, told EFE.
For Vieira, despite the fact that inflation is above the target, the numbers released the day before, with a reduction that exceeded market forecasts, “are a positive sign”, regardless of fears about the rise in the price of fuels with the resumption of regional taxes by the Government.
Thus, the largest Latin American parquet by turnover ended the session with almost 4.7 million operations and a total of 59,760 million reais (about 12,195 million dollars), a figure higher than the daily average due to the expiration of contracts with stock options.
The ordinary titles of the stock market itself (B3) were the most traded on this day, with a rise of 5.10%, followed by the similar ones of the state-owned Banco do Brasil (BVMF:) (6.96%).
