Dollar closes lower at R$5.61, following foreign markets; Ibovespa falls

The spot dollar fluctuated in narrow margins against the real this Thursday, firming in decline in the final stretch of the session, with prices following the fall of the US currency against other emerging currencies abroad.

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The dollar closed down 0.57%, quoted at R$5.6177. In September, the currency accumulated a drop of 0.33%. See quotes.

At 5:15 pm, on B3, the first-maturity dollar futures contract fell 0.85%, to 5.6300 reais for sale.

The Ibovespa also closed lower on Thursday, with blue chips Petrobras and Itaú Unibanco among the biggest negative pressures, while Vale shares offered a counterweight, rising around 1% in the wake of the rise in the price of iron ore.

The benchmark index of the Brazilian stock market, the Ibovespa, fell 0.36% to 134,194.26 points, according to preliminary data, marking 134,776.87 points at its highest point and 133,591.04 points at its lowest point of the day. The financial volume totaled R$14.9 billion before the final adjustments.

The dollar in the day

In the morning, the dollar remained in positive territory against the real, but with limited gains, in the absence of triggers for more intense movements.

In the United States, Labor Department data showed the producer price index (PPI) rose 0.2% in August after being flat in July, a revised figure. Economists polled by Reuters had forecast a 0.1% increase in the index.

The agency also said initial jobless claims rose by 2,000 in the week ended Sept. 7 to a seasonally adjusted 230,000. Economists polled by Reuters had forecast exactly 230,000 claims for the latest week.

U.S. figures kept the Federal Reserve’s outlook for a 25 basis point cut next week, rather than 50 basis points, supporting Treasury yields. However, the dollar was weakening against most other currencies, pushing prices into negative territory in Brazil as well.

A trader interviewed by Reuters drew attention to the reduced liquidity in the Brazilian foreign exchange market this Thursday, which ended up favoring the renewal of lows in the dollar against the real in the final stretch of trading.

After reaching a high of R$5.6775 (+0.49%) at 11:55 am, the spot dollar hit a low of R$5.6152 (-0.61%) at 4:50 pm, close to closing. At this time, in the futures market, trading of the dollar for October — currently the first and most liquid maturity — totaled 172 thousand contracts, an amount below the average for the time.

Abroad, the dollar continued to fall against most currencies in the late afternoon. One of the highlights was the fall of the US currency against the euro, with the single currency being boosted by indications from authorities that the European Central Bank (ECB) is unlikely to cut interest rates again in October.

At 5:13 p.m., the dollar index — which measures the performance of the US currency against a basket of six currencies, including the euro — was down 0.51%, at 101.260.

In the morning, the Central Bank sold all 12,000 traditional foreign exchange swap contracts offered at auction to roll over the maturity date of November 1, 2024.