Dollar goes to R$ 5.32 after approval of ‘PEC Kamikaze’ in the Senate | Economy

At 10:23 am, the US currency rose 1.69%, sold at R$5.3209. The maximum so far, it reached R$ 5.3252. See more quotes.

The last time the dollar surpassed the R$5.30 level was on February 4, when it closed at R$5.3206.

On Thursday, the dollar closed up 0.78%, at R$ 5.2327. As a result, accumulated a high of 10.13% in June. In the year, it still has a devaluation of 6.14% against the real.

Understand what makes the dollar go up or down

Understand what makes the dollar go up or down

What is messing with the markets?

On the local scene, the Senate approved on Thursday the PEC (proposed amendment to the Constitution) that releases R$ 41 billion in spending just over three months before the elections. The PEC now goes to the Chamber of Deputies. If approved by the deputies, its impact on public coffers could reach R$ 41.2 billion.

Dubbed the “PEC Kamikaze”, it reignited fiscal fears and further pressure on interest rates and inflation. Analysts also point out that the proposal is a legal form of trying to circumvent the electoral law.

  • See the main points of the PEC that provides for an increase in spending 3 months before the elections

On the agenda of indicators, the Producer Price Index (IPP) rose 1.83% in May. In the 12-month period, the so-called “factory door” inflation, excluding taxes and freight, reached 19.15%. Twenty-one of the 24 activities monitored by the IPP had price increases in May.

The day before, the Central Bank officially admitted that the inflation target, in 2022, will be breached for the second year in a row. the BC estimated in a report an increase in prices of 8.8% for 2022; 4% for 2023 and 2.7% for 2024.

Abroad, the focus remains on fears of a global recession, with investors looking for clues about the trajectory of interest rates in the US and Europe.

Eurozone inflation hit yet another record high in June, reaching 8.6% in 12 months, reinforcing expectations of higher interest rates.

Oil prices were up more than 2% on Friday, while iron ore and steel prices closed lower in Asian markets.

Senate approves PEC that allows government to launch social aid outside the spending ceiling

Senate approves PEC that allows government to launch social assistance outside the spending ceiling

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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