MercoPress. South Atlantic News Agency

Dollar falls and São Paulo stock exchange surges after Trump's truce signal with Iran

The Ibovespa index on the B3 exchange rose 3.24% to close at 181,931 points, recovering Friday's 2.25% loss. At its peak, the index approached 183,000 points.

Brazilian financial markets posted one of their best sessions of the year on Monday after President Donald Trump announced a five-day postponement of strikes against Iran's energy infrastructure, citing “productive conversations” with Tehran.

The dollar closed at 5.24 reais, down 1.29%, after touching an intraday low of 5.21 reais around midday. The Ibovespa index on the B3 exchange rose 3.24% to close at 181,931 points, recovering Friday's 2.25% loss. At its peak, the index approached 183,000 points.

The reaction was immediate following Trump's post on Truth Social, in which he said the United States and Iran had held “very good and productive conversations” regarding “a complete and total resolution of our hostilities in the Middle East.” The announcement reversed the 48-hour ultimatum Trump himself had issued on Saturday, in which he threatened to destroy Iranian power plants if Tehran did not reopen the Strait of Hormuz.

Brent crude plunged 10.9% to close at $99.94 per barrel, falling below $100 for the first time since March 16. The drop in crude had a mixed effect on the Brazilian exchange: bank stocks and companies tied to the domestic economy led the gains, while Petrobras shares posted more modest increases as they came under pressure from the falling oil price.

The reduction in global risk aversion benefited emerging-market currencies, including the real. The DXY index, which measures dollar strength against a basket of currencies, fell 0.56%. However, despite Monday's sharp decline, the dollar has still gained 2.08% against the real in March. Year to date, the US currency is down 4.52%.

Wall Street also rallied: the S&P 500 rose 1.15%, the Dow Jones 1.38% and the Nasdaq 1.38%.

Iran denied any negotiations with Washington, which tempered some of the optimism during the session. Iran's Foreign Ministry attributed Trump's statements to an attempt to “reduce energy prices and buy time.” However, two Indian oil tankers managed to transit the Strait of Hormuz on Monday, a sign that helped ease tensions.

Brazil's Central Bank's latest Focus survey raised inflation and Selic rate projections, incorporating the effects of the energy shock. Analysts warn that despite the momentary relief, the outlook remains under pressure if disruptions to oil supply persist. Volatility is expected to continue amid contradictory signals about the conflict and the absence of a lasting ceasefire.CompartirContenido del proyectoMercoPressCreado por tiAgrega PDF, documentos u otro texto para consultar en este proyecto.