The Brazilian market is experiencing a Tuesday (12) of double optimism: the dollar has returned to trade below R$ 5,40 for the first time since September of last year and the Ibovespa has broken the 138 thousand points, reaching the highest level since May. The combination of weaker inflation in Brazil and the United States has rekindled bets on interest rate cuts in both economies, boosting currencies and risk assets.

This afternoon, around 2 PM, the spot dollar was down 0.89%, quoted at R$ 5,395. Meanwhile, the Ibovespa was up 1.95%, at 138,273 points, supported by stocks like Sabesp (SBSP3), up over 10%, and BTG Pactual (BPAC11), with gains exceeding 12% after corporate results that were above expectations.