(Image: REUTERS/Tita Barros)
The Minister of Farm, Fernando Haddadsaid this Friday that there was no objective reason for the recent market movements, on a bad day for Brazilian assets.
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“I can’t evaluate (the market reaction). I work with objective data. It’s difficult to work with subjective data about what led a person to make one decision or another. Objectively speaking, there is no reason,” Haddad said in a quick interview with journalists in São Paulo after an event promoted by the University of São Paulo.
O dollar spot closed the day up 1.84%, quoted at 5.521 reais, ending a sequence of seven sessions of decline in a risk aversion movement, amid uncertainties regarding the government's commitment to public accounts.
“I tend to believe it was because we postponed the press conference for the bimonthly report (of revenues and expenses). Then unfounded rumors started to circulate,” he said, commenting on the rise of the dollar.
The benchmark index of the Brazilian stock market, the Ibovespafell 1.55%, also pressured by concerns about the fiscal situation in the country, and the possible effects on shares of potential new hikes in the Selic rate.