The dollar started Monday (4) slightly higher against the real, slowing the recent climb that took the currency to the highest level in five months at the end of last week. The day is of reduced movement in the market due to the holiday in the United States.
At 9:54 am, the spot commercial dollar was quoted at R$5.3270 on sale, up 0.09%. Last Friday (1st), the currency rose 1.72%, quoted at R$5.3220, the highest value since February 4th.
The news of the approval of the PEC (Proposed Amendment to the Constitution) that establishes a state of emergency to expand and create new social assistance, approved by the Senate this Thursday (30), worsened the mood of the markets, already shaken by fears of a strong global slowdown.
Analysts assess the measure as electoral and, despite having positive effects in the short term, it should worsen the fiscal scenario for next year.
The news of the approval worsened the mood of the markets this Friday, already shaken by fears of a strong global slowdown.
“The market is reading it as a measure to try to get votes in the elections”, says Fernanda Consorte, chief economist at Banco Ourinvest.
The analyst says that Brazil has created an additional domestic risk by putting in place a PEC that increases government spending, which adds to the fear of a global recession, which drives the market.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
