Dollar retreats and Ibovespa closes 2025 at historic high

by Marcelo Moreira

The Brazilian financial market ends 2025 with positive performance in both the exchange rate and the Stock Exchange. The dollar closes the year with a drop of 11.2% against the real, after starting January at R$6.18, reflecting the greater inflow of resources into the country and the improvement in the domestic economic scenario.

On the Stock Exchange, Ibovespa is on track for its best annual result since 2016, accumulating an appreciation of around 35% throughout 2025. Among the factors that boosted the main index are high interest rates in Brazil, which attracted foreign investors, in addition to prices considered discounted after the drop recorded in 2024 and the improvement in the balance sheets of companies with a large weight in the index.

Economic indicators also contributed to market optimism. Recent data from the labor market show that the unemployment rate fell to 5.2% in the quarter ended in November, the lowest level in the Pnad Contínua historical series, which began in 2012. According to analysts, the increase in employment and income strengthens consumption, increases companies’ profit potential and sustains the good momentum of the Brazilian economy.

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