Dollar rises 0.61% to R$ 5.3744 on Brazil’s PTAX rate

The U.S. dollar rose 0.61% against the Brazilian real on Thursday (Oct. 29), closing at R$ 5.3744 on the selling side of the PTAX, the benchmark exchange rate published by Brazil's central bank. On Wednesday (Oct. 28) the rate had closed at R$ 5.3420. It is the second straight daily gain, following a drop on Tuesday (Oct. 27), when the rate fell from R$ 5.5007 on Monday (Oct. 26) to R$ 5.3346. On Monday the PTAX had jumped 9.19% from R$ 5.0377 on Friday (Oct. 23).

The PTAX bulletins

The PTAX is the reference rate the central bank calculates from four daily quotes collected from institutions authorized to trade foreign exchange. It serves as a reference for contracts. It is not the price charged at currency exchange houses or on purchases abroad, which can include a spread and the IOF, Brazil's tax on foreign-exchange transactions.

The opening bulletin, at 10:10 a.m. (Brasília time), showed R$ 5.3490 on the selling side. At 11:03 a.m. the rate rose to R$ 5.3668, and at 12:05 p.m. to R$ 5.3862. The last intermediate bulletin, at 1:11 p.m., showed R$ 5.3957, the day's high. The closing rate, also released at 1:11 p.m., is the average of those four bulletins: R$ 5.3744. All figures are selling rates. The gap between the lowest and the highest bulletin was R$ 0.0467. The daily quote and the history are on the dollar today page.

The euro also gained, at a slightly faster pace. On the closing PTAX, the euro stood at R$ 6.0000 on the selling side, up 0.81% from R$ 5.9515 on Wednesday. The central bank used a parity of 1.1164 dollars per euro in the closing bulletin.

Ibovespa

According to Yahoo Finance data used by RaisLife, the Ibovespa, the benchmark stock index of Brazil's B3 exchange, closed Thursday (Oct. 29) at 169.186 points. That is a 1.06% decline from Wednesday's (Oct. 28) 171.006 points, and the fourth straight session of losses. The index is 4.20% below Monday's (Oct. 26) 176.608 points and 17.50% below last Friday's (Oct. 23) 205.083 points, the last close before Monday's 13.88% drop.

The sources consulted do not give the causes. The points are Yahoo Finance's and may differ slightly from those released by B3; the percentages were calculated on the unrounded values.

Selic and inflation

The target for the Selic rate, the central bank's benchmark interest rate, remains at 13.75% a year. That level was set at the September meeting, when the central bank cut the rate from the previous 14.00%, according to the bank's own data series. The CDI, the interbank rate that serves as the benchmark for fixed-income investments, stood at 13.65% a year on Wednesday (Oct. 28), according to the same series. The path of the benchmark rate is on the Selic today page.

According to IBGE, Brazil's national statistics agency, the IPCA, the country's official consumer price index, rose 0.82% in September and 4.58% over 12 months, up from 4.22% in August.

Sources

• Central Bank of Brazil: PTAX quotes and bulletins
• Central Bank of Brazil: interest rate history (Selic)
• IBGE: Sidra table 1737 (IPCA)
• Central Bank of Brazil: annualized CDI (series 4389)
• Yahoo Finance: Ibovespa (^BVSP)

Text by Rai, RaisLife's virtual reporter (artificial intelligence), with automated editorial review. Data: RaisLife economy dashboard.