After surpassing R$5.86 at the start of this Wednesday’s session (6), the day Donald Trump won his second electoral victory in the United States presidential race, the spot dollar lost strength in Brazil and closed Wednesday. fair falling steadily, below 5.70 reais, with investors waiting for effective measures from the Lula government to contain spending.
The surge in orders from “stop loss” (stop losses) in the market during the day also favored the fall of the dollar against the real, even though abroad the North American currency sustained strong rises against other currencies.
The spot dollar closed the day down 1.21%, quoted at R$5.6774. Since the beginning of the year, however, the currency has accumulated an increase of 17.02%.
READ MORE: More inflation, less taxes: what Trump’s victory means for the US economy
At 5:04 pm, on B3, the first maturity dollar futures contract fell 1.28%, to R$5.6925 on sale.
Brazilian real strengthened today against the dollar, against emerging pairs,
While the Mexican peso fell around 0.3% during a volatile session, the Brazilian real erased losses throughout the trading session this Wednesday (6) and led the gains among the currencies of developing nations. The MSCI EM FX indicator was still lower during the day, less than 1% away from clearing its 2024 gains, as Eastern European currencies fell.
Eastern European currencies led the losses, sending a gauge of emerging market currencies to its worst day since February 2023. The Mexican peso, often seen as most vulnerable to Trump’s trade policies, weakened after posting brief gains . At the beginning of the session, the currency fell by 3.5%.
Investors are still uncertain about the prospects for risk assets under a new Trump administration. His promises of tighter restrictions on imports and immigration are fueling bets on higher U.S. borrowing costs and a stronger dollar, diminishing the appeal of the asset class.
Despite the appreciation of the real, Ibovespa ends the day in decline
The Ibovespa closed down this Wednesday, but far from the day’s low, when it fell below 129 thousand points, in a session marked by the repercussion of the election of Republican Donald Trump as president of the United States, in addition to corporate results and expectations for the decision of the Central Bank.
The reference index for the Brazilian stock market, Ibovespa fell 0.29%, to 130,287.64 points, according to preliminary data, having marked 128,822.16 points at the minimum and 130,669.69 points at the maximum of the day. The financial volume totaled 22.6 billion reais before final adjustments.
*With agency information
