Amid tension in the global market scenario due to the coronavirus, the dollar remains high and reached a high of R$ 5.0158
This Monday (16), the dollar is operating in a strong rise and approaching R$ 5 again. In another day of tension in global markets, after the Federal Reserve announced yet another surprise cut in the US interest rate and with more countries closing their borders to try to reduce the coronavirus pandemic.
Internally, bets are growing on a cut in the Selic rate this week.
At 3:51 pm, the US currency was up 4.11%, trading at R$ 5.0153. At its highest so far, it reached R$ 5.0158. On Friday, the dollar closed the day up 0.51%, R$ 4.8127, the highest nominal closing price (without considering inflation), accumulating a high of 20.02% in the year.
Bovespa Fall
On Monday at 3:01 pm, the Ibovespa (B3), the main stock exchange index, fell 13.56%, to 71,469 points. Earlier, it had fallen by more than 14%, falling 70,855 points. And trading was interrupted right at its opening.
Expectation of interest rate cuts in Brazil
This week in Brazil, attention is turning to the meeting of the Central Bank's Monetary Policy Committee (Copom), which will announce the new basic interest rate next Wednesday (18). With the Fed's decision, market bets are increasing on a new cut in the Selic rate, which is currently at 4.25%.
According to the Central Bank's Focus Bulletin, released this Monday, the market reduced its GDP estimate for 2020 to 1.68%. Analysts are predicting an interest rate cut of 4% per year this week.
As for the exchange rate, the market increased its projection, which rose from R$ 4.20 to R$ 4.35 per dollar. For the end of 2021, it remained stable at R$ 4.20 per dollar.