By Luana Maria Benedito
SAO PAULO (Reuters) – The dollar ended this Tuesday in a sharp drop against the real, reflecting market participants’ hopes that the Precatório PEC will advance through Congress, with expectations of higher interest rates in Brazil and inflation data from the States United also on the radar.
The dollar traded on the interbank market dropped 0.91% to 5.4911 reais, the lowest level since October 15 (5.4545). Meanwhile, the more liquid futures dollar was down 0.99% to 5.5170 reais.
The Brazilian currency in cash had the second best performance against the dollar among the main global currencies this Tuesday, only behind the Chilean peso. In the low of the trading session, the dollar reached 5.4567 reais on sale, down 1.53%.
On Tuesday afternoon, the plenary of the Chamber of Deputies resumed voting on the Proposed Amendment to the Constitution (PEC), which changes the form of payment of court orders, with the appreciation of highlights to change specific points in the basic text, approved last week passed in the first round.
The first highlight, presented by the PT, was rejected, in a sign that the allied base may have a large majority to be able to conclude the vote on the measure.
Earlier, investors also commemorated the news that the Federal Supreme Court (STF) rejected the request of several deputies to suspend the processing of the PEC dos Precatório in the Chamber, understanding that the matter is a matter of internal order in the House.
Fernando Bergallo, director of operations at FB Capital, called the PEC dos Precatórios as “indispensable” for the government to open fiscal space for financing a social benefit of 400 reais per family in 2022, an election year.
“The government will honor this increased emergency aid anyway. If he doesn’t get through the PEC, he could declare a state of calamity or something that would be much worse from a fiscal point of view, because then it would kick the (spending) ceiling away,” he told Reuters.
In addition to the political-fiscal news, Bergallo also cited expectations that the Central Bank may accelerate the pace of monetary tightening as a support factor for the real on Tuesday. At the last meeting of the Monetary Policy Committee (Copom) of the autarchy, the Selic rate was raised by 150 basis points, to 7.75% per year.
Abroad, the dollar index against a basket of strong currencies fluctuated between stability and a slight decline. Investors pointed to the global environment as benign for assets considered risky on Tuesday.
The international market is now awaiting the release, on Wednesday, of data on US consumer inflation, which may offer clues as to when the Federal Reserve will raise interest rates.
The US central bank said at its last monetary policy meeting that it will be patient with rising borrowing costs. Maintaining low interest rates in the world’s largest economy is seen as favorable to emerging country currencies.
See too
+ Fighter becomes unrecognizable after being kicked in the face
+ Amazon driver fired after woman caught driving out of backyard
+ The 20 best-selling pickup trucks in 2021
+ Video: Globo’s helicopter crash lands and loses tail; pilot prays after landing
+ Scientists discover causes of Alzheimer’s progression in the brain
+ Chef playmate creates aphrodisiac recipe for Orgasm Day
+ Mercedes-Benz Sprinter wins motorhome version
+ Anorexia, an eating disorder that can lead to death
+ US Agency warns: never wash raw chicken meat
+ Yasmin Brunet breaks the silence
+ Shark is captured in MA with the remains of youngsters missing in the stomach
+ See how much it costs to eat at the MasterChef judges’ restaurants
+ Auction of cars and motorcycles from Kombi to Nissan Frontier 0km
#Dollar #strong #fall #Real #focus #PEC #Precatório #ISTOÉ #DINHEIRO