Dollar falls to R$5.45 after US elections and before Copom

The dollar closed lower this Wednesday (4), following the weakening of the US currency abroad following the victory of the Democrats in the mid-term elections in the United States. The stock market advanced more than 1%, recovered 167 thousand points and interrupted a sequence of six consecutive drops.

Investors also followed the expectation of the decision of the Monetary Policy Committee (Copom) on the Selic. The market closed before the announcement of maintaining the economy's basic interest rates at 13.75% per year.

Main numbers

Cash dollar: R$5.451 (-0.64%);

Ibovespa: 167,563.47 points (+1.23%);

Global dollar (DXY index): 101,520 points (-0.2%);

Brent oil: US$94.62 per barrel (-8.67%).

Exchange

The US currency ended the day lower against the real, after three consecutive sessions of increases. The movement was influenced by the result of the legislative elections in the United States, in which the Democrats won a majority in the Senate and the Chamber of Deputies.

The result reduced the perception of risk of sudden changes in US economic policy and contributed to the weakening of the dollar globally. The fall in yields on US Treasury bonds also favored currencies from emerging countries.

In Brazil, however, the real's gains were limited by investors' caution in the face of fiscal uncertainties and expectations regarding the conduct of economic policy in the next government. Copom's decision on the basic interest rate was also on the radar.

The dollar reached R$5.498 at the session's high, around 1:30 pm, but remained in negative territory throughout the afternoon.

Ibovespa stops losses

The Ibovespa rose 1.23%, to 167,563.47 points, after six consecutive sessions of decline. At the day's high, just before 2 pm, the index reached 167,986.37 points.

The performance followed the more favorable environment for risk assets abroad, driven by the victory of the Democrats in the United States. The improvement in the global scenario favored shares of banks, Vale and other interest-sensitive companies.

On the contrary, Petrobras shares, the most traded on the stock exchange, fell significantly, following the fall in oil prices on the international market. Brent for January fell 8.67% to US$94.62 per barrel.

The Brazilian trading session ended before the Copom decision was announced, which was awaited by investors. The expectation of part of the market was for the Selic Rate to be maintained at 13.75% per year.

* with information from Reuters