Dollar returns to R$5 with external environment and post-election adjustment

The Brazilian financial market had an adjustment session this Wednesday (7), after the rally (sharp fall in the dollar and rise in the stock market) registered after the first round of elections. The dollar once again surpassed R$5, and the Ibovespa fell 0.74% and closed at 204 thousand points.

Abroad, stock markets fell, Treasury interest rates remained high and oil remained above US$100 per barrel.

Main numbers

Cash dollar: R$5.016 (-0.83%);

Dollar in the year: drop of 8.62%

Ibovespa: 204,302.33 points (-0.74%);

Ibovespa in the month: increase of 9.64%;

Ibovespa in the year: increase of 26.8%.

Dollar over R$5

The spot dollar closed up 0.83%, at R$5.016, after reaching a maximum of R$5.017 in the final stretch of business. In the previous session, the currency had recorded the lowest price in almost five months.

The movement interrupted two consecutive sessions of decline, a period in which the dollar accumulated a drop of 4.65%. During the week, the currency still registered a drop of 3.94%.

Abroad, the DXY index, which measures the performance of the American currency against a basket of six currencies, rose 0.36%, to 102.280, after reaching a maximum of 102.499.

Markets also followed the trajectory of US Treasury bond yields. The rate on ten-year bonds reached 5.36%, the highest level in 24 years, before falling back to the region of 5.28%.

High interest rates in advanced economies encourage the flight of resources from emerging countries, such as Brazil, putting pressure on the dollar and the stock market.

Stock market retreats

The Ibovespa closed down 0.74%, at 204,302.33 points, after oscillating between a minimum of 204,176.12 points and a maximum of 206,877.47 points.

The financial volume handled in the trading session totaled R$57.2 billion, before final adjustments.

With this Wednesday's fall, the index interrupted another session of increase after the strong appreciation movement registered after the first round. Even so, it accumulates an increase of 9.64% in the month and 26.8% in 2026.

American stock markets also ended the day in the negative. The S&P 500, an index of the 500 largest companies in the United States, fell 0.22%.

Oil and the Fed

Oil prices lost strength throughout the afternoon, but the Brent barrel for December remained above US$ 100. The rise in the product was also on investors' radar given the new tensions in the Middle East.

In the American interest rate market, investors evaluated the minutes of the September meeting of the Federal Reserve (Central Bank of the United States), when the country's base rate was raised to the range of 3.75% to 4%.

The document showed differences between leaders on the basis for raising interest rates and kept inflation among the main focuses of attention of the US central bank.

*With information from Reuters