US currency falls 1.46% this Thursday (4.Jul.2024); it is the lowest price since June 25, 2024
The commercial dollar closed this Thursday (July 4, 2024) quoted at R$5.49, a drop of 1.46%. It is the lowest value for the US currency since June 25, 2024.
At the opening, the dollar had reached a similar level. The downward trajectory this Thursday (July 4) is a consequence of the announcement by the economic team of the president’s government Luiz Inácio Lula da Silva (PT), led by the minister Fernando Haddad, that will make cuts R$ 25.9 billion in mandatory expenses in the 2025 Budget.
Meanwhile, Ibovespa, the main index of B3 (São Paulo Stock Exchange), closed the day at 126,163.98 points, which represents an increase of 0.40%.
CUTTING EXPENSES
The announcement of the spending cuts was made by Haddad on Wednesday (3 July).
“We have already identified, and the president has authorized us to move forward, R$25.9 billion in mandatory expenses that will be cut after the affected ministries are notified of the limit that will be given for the preparation of the 2025 Budget”he told reporters.
The Finance Minister stated that the savings will come because of a “fine-tooth comb” that is being done in social benefit expenses. According to him, some measures may be brought forward in the form of blocking or contingency in 2024.
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