Dollar rises 0.69% to R$5.0441 on Brazil’s PTAX rate

The U.S. dollar rose 0.69% against the Brazilian real on Wednesday (Oct. 14), ending the day at R$5.0441 on the PTAX, the reference rate published by Brazil's central bank. A day earlier, on Tuesday (Oct. 13), the last business day with a published rate, it stood at R$5.0096.

The PTAX is the average of four central bank surveys of the market, taken over the morning and early afternoon and released in five bulletins a day. Contracts use it as a benchmark, and it is calculated through 1 p.m., so it is not the market close. It is also not the rate charged by currency exchange bureaus or on purchases abroad, which add a spread and the IOF, Brazil's tax on foreign-exchange transactions.

How the rate moved during the day

The first bulletin, at 10:08 a.m., put the selling rate at R$5.0462. The intermediate bulletins followed at R$5.0497 (11:09 a.m.), R$5.0412 (12:02 p.m.) and R$5.0393 (1:05 p.m.). The final bulletin, also at 1:05 p.m., settled at R$5.0441. The figures are from the central bank and were updated at 10 p.m. Brasília time.

The central bank calculates the euro from the euro-dollar parity (1.1124 on Wednesday) and the dollar's PTAX. The euro closed at a selling rate of R$5.6111, up 0.03% from R$5.6092 the day before.

The dollar this month

October's high on the PTAX so far was R$5.2238, on Oct. 2. On the following Monday (Oct. 5), the rate dropped to R$4.9859, a decline of 4.55% from Friday to Monday. It hit the month's low on Oct. 6, at R$4.9698. In the days after that, it moved between R$4.9892 and R$5.0441. Wednesday's close is the highest since Oct. 2 but is still below the R$5.2238 of Friday, Oct. 2.

Selic: rate-setting committee meets in November

The target for the Selic, Brazil's benchmark interest rate, stands at 13.75% a year. It took effect on Sept. 17, after the central bank's rate-setting committee, known as Copom, cut it from 14.00% on Sept. 16, according to the central bank's historical series. The CDI, an interbank rate that closely tracks the benchmark, was 13.65% a year on Oct. 13 (annualized, based on 252 business days). Copom's next meeting is scheduled for Nov. 3-4, according to the central bank's calendar, with the decision announced at the end of the second day.

Inflation: September's IPCA

According to IBGE, Brazil's statistics agency, the IPCA consumer price index rose 0.82% in September. Inflation over 12 months climbed from 4.22% in August to 4.58%. That is above the 4.5% upper limit of the target, which is set at 3% with a tolerance of 1.5 percentage points in either direction. In August, the index had recorded deflation of 0.32%.

Sources

• Central Bank of Brazil: PTAX quotes and bulletins
• Central Bank of Brazil: interest rate history (Selic target)
• Central Bank of Brazil: Copom meeting calendar
• IBGE: Sidra, table 1737 (IPCA)

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