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Brazil Goes for a Ride on Wall Street’s Bullish Train and Dollar Falls

The São Paulo Stock Exchange (Bovespa) started October with a boom, closing at 62.340 points, 3.1% higher than the previous Friday and breaking a new record. This after a September that saw the Ibovespa, Bovespa's main index, zooming 10.6% up and following a week in which four records were broken in four different days.

While the stocks keep growing the dollar can't stop shrinking. This Monday saw the American currency falling 1.36% to 1.81 reais for a dollar, the lowest value since August 2000. Analysts believe the dollar will continue its free fall, after having dropped 6.52% in September alone. Brazil has embarked on the same bullish train that Wall Street has been riding.

Meanwhile, the Brazilian trade balance surplus (exports minus imports) in the month of September reached US$ 3.471 billion, a slight reduction of 1.78% over the previous month, but with an expressive reduction of 22.31% in comparison with the same month in 2006. The figures were disclosed today (01) by the Ministry of Development, Industry and Foreign Trade.

In the accumulated result for the year, a total of 188 working days, the trade balance surplus reaches US$ 30.947 billion, a reduction of 9.55% as against the US$ 34.214 billion in the same period in 2006. Over the last 12 months (October/2006 to September/2007) the result has reached US$ 43.190 billion.

The trade balance surplus in the year is the result of exports of US$ 116.599 billion and imports of US$ 85.652 billion. There has been significant growth in trade both ways, but with purchases of foreign products rising more. While Brazilian sales on the foreign market grew 15.5%, imports rose 28.3%.

 

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