Exchange advances 0.7% and is quoted at R$ 5.08; Ibovespa retracts 0.5%, to 126,920 points
The main indicators of financial market Brazil closed this Monday, 5, in the negative field with political noise in Brasília and without operations in the United States. O dollar closed with a high of 0.68%, quoted at R$ 5.088. The exchange rate reached the maximum of R$ 5.093, while the minimum was R$ 5.047. The US currency ended last week with a slight increase of 0.16%, to R$ 5.053. O Ibovespa, a reference on the Brazilian Stock Exchange, closed with a drop of 0.55%, at 126,920 points, returning most of the gains on Friday, 2, when it closed with a high of 1.56%, at 127,621 points.
The closing of markets in the US because of Independence Day took much of the liquidity out of stock exchanges around the world. Also on the international scene, investors continued to analyze the advancement of new strains of coronavirus and the impact on the recovery of the world economy. Domestically, the mood of the market was pressured by new political noises in Brasília with the release of audios indicating the participation of the president Jair Bolsonaro (non-party) in a scheme to withhold part of advisors’ salaries when he was a federal deputy. According to a website report UOL, one of the then deputy’s brothers-in-law was fired for not making the required transfer of amounts. In a statement, senator Flávio Bolsonaro (Patriota-RJ) denied any wrongdoing in the family.
On the index agenda, the financial market again revised upwards the forecasts for the inflation and economic growth in 2021, while reducing the projection for the exchange rate. Data from the Focus Bulletin released this Monday showed that the estimate for the Broad Consumer Price Index (IPCA) rose from 5.97% to 6.07%. The expectation for the Gross Domestic Product (GDP) was changed to a high of 5.18%, compared to an estimate of 5.05% last week. Central Bank sources reduced the exchange rate forecast to R$ 5.04. In the previous edition, the survey pointed to a price of R$ 5.10 at the end of 2021.
Also on the domestic agenda, Petrobras announced new increases in the prices of gasoline, diesel and cooking gas charged to refineries. The values are valid as of this Tuesday, 5. Gasoline will be increased by 6.3%, from R$ 2.53 per liter to R$ 2.69 (an increase of R$ 0.16). Diesel will have an increase of 3.7%, from R$ 2.71 a liter to R$ 2.81 (an increase of R$ 0.10). Liquefied Petroleum Gas (LPG), popularly known as cooking gas, will be increased by 5.9%, from R$ 3.40 to R$ 3.60 per kilogram (an increase of R$ 0.20). The increase raises the price of the 13-kilogram cylinder from R$ 44.20 to R$ 46.80. This is the first fuel adjustment since General Joaquim Silva e Luna took command of the state-owned company in April. Since the beginning of the year, gasoline has accumulated an increase of 46%, while diesel adds up to 39%, and cooking gas, 38%.