The dollar recorded this Friday (29) the biggest weekly fall in a year and eight months. On another day of volatility in the financial market, the stock exchange recovered by 103 thousand points and reached its maximum level in 50 days.

The commercial dollar ended this Friday (29) at R$5.174, up R$0.011. The price had a volatile day. After starting the session from a low, fell to 5.15 reais just before 10:00 am, but rose to 5.21 reais around 10:20 am and slowed down for the rest of the day.

Reaching R$5,499 on the 22nd, the currency closed in July with a 1.16% drop and hit a low of 7.21% in 2022. Photo: Marcello Casal Jr/Agência Brasil/ND

As of this Friday, the US currency ended the week down 5.9%, the biggest weekly drop since November 2020. a minimum of 7.21% in 2022.

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In the stock market, the day was marked by growth. The B3 Ibovespa index closed at 103,165, up 0.55%. The indicator even rose 1.36% around 3:45 pm but slowed as some investors sold shares to pocket recent gains.

The Brazilian stock market is at its highest level since June 10. Ibovespa was up 4.29% for the week, its biggest weekly gain since March last year. The indicator closed the month up 4.69% after falling 11.5% in June.

On the external market, investors continued to transmit data indicating a slowdown in the North American economy. Yesterday (28) it was announced that the United States entered a technical recession in the second quarter of this year after registering two consecutive contractions in gross domestic product (GDP, the sum of goods and services produced).

The slowdown in the US economy reduces the pressure on the Federal Reserve System (the Fed, the US Central Bank) to further tighten monetary policy at the upcoming meetings. Higher interest rates in advanced economies encourage capital outflows from developing countries such as Brazil. The new stimulus provided by China also eased the tension in the international market.

As for the domestic scenario, the announcement that Petrobras’ second-quarter profit was R$54.3 billion gave investors hope this Friday. Government shares, which are the most traded shares on the Brazilian stock exchange, have risen sharply. Ordinary shares (with the right to vote at the shareholders’ meeting) rose 6.42%. Preferred shares (with preferential distribution of dividends) jumped 5.76%.