Home BusinessDollar Falls to R$ 5.1869; Ibovespa Nears 190,000 Points, Sets New Record

Dollar Falls to R$ 5.1869; Ibovespa Nears 190,000 Points, Sets New Record

by Jonathan Dubinski

Key Takeaways

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  • Brazils Ibovespa stock index reached a new high of 189,699 points on Wednesday, marking its 11th record this year and surpassing 190,000 for the first time. This surge is attributed to foreign investment, positive economic news, and strong performance by commodity exporters like Petrobras and Vale.
  • The U.S. dollar hit its lowest level since May at R$5.1869 due to increased foreign investment in emerging markets, particularly Brazil.
  • A narrowing gap in the Brazilian presidential race indicates a tightening contest between Lula and Flavio Bolsonaro, with Lula leading by just five points in a simulated second-round election. This suggests increased competition and potential governmental change, which may inspire optimism regarding future public finances.
  • The U.S. economy showed robust signs of growth in January, adding 130,000 jobs and decreasing the unemployment rate to 4.3%. These figures suggest a strong U.S. economy, potentially influencing the Federal Reserve to delay interest rate cuts.

Record-Breaking Ibovespa; Dollar Hits Lowest since May amid Strong Foreign Investment and Narrowed Presidential Race

Brazil’s Ibovespa stock index reached a new high on Wednesday, driven by foreign investment and positive economic news. The Ibovespa closed up 2.03% at 189,699 points, marking its 11th record this year, after surpassing 190,000 during trading for the first time. Simultaneously, the dollar fell to R$5.1869, its lowest level since May, a 0.18% drop. This market activity reflected strong foreign investment flows into emerging markets, particularly Brazil, with commodity exporters like Petrobras and Vale seeing stock increases above 3%. Further boosting investor confidence, a QuestodeBio poll (reported by G1) indicated that Lula’s lead in the presidential race is narrowing. Specifically, the poll showed Lula leading Flavio Bolsonaro by just five points in a simulated second-round election: 43% to 38%, respectively. This margin has shrunk from seven points in January and ten in December, suggesting increased competition and potential governmental change, which inspires optimism regarding future public finances. In other economic news, the U.S. released strong job numbers for January, adding 130,000 jobs, exceeding expectations. The unemployment rate decreased to 4.3%, with wages increasing by 0.41% for the month and 3.71% year-over-year. These figures suggest a robust U.S. economy, potentially influencing the Federal Reserve to delay interest rate cuts.

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Dollar Falls to R$ 5.1869; Ibovespa Nears 190,000 Points, Sets New Record queda dolar recorde historico economia 6

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