Dollar closes slightly higher and goes to the highest level since January | Economy

The dollar closed slightly higher on Monday (4), on a holiday in the US, with investors monitoring the increase in fiscal risks in Brazil.

The US currency rose 0.08%, sold at R$5.3251. See more quotes. It is the highest closing level since January 29 this year (R$ 5.39).

On Friday, the dollar rose 1.68% to R$5.3206. With the result of this second, the North American currency accumulates a high of 2.04% in the month. In the year, it still has a devaluation of 4.48% 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?

In the United States, financial markets did not work on Monday due to the Independence Day holiday.

The release of the minutes of the Federal Reserve’s latest monetary policy meeting on Wednesday could bring more clues about the next move for US monetary policy – a 0.50 point high or a 0.75 point high. . On Friday, US job creation data will also serve as an important thermometer of the current stage of the country’s economic growth cycle.

On the domestic scene, the focus remains on the PEC (a proposal to amend the Constitution) that releases R$ 41 billion in spending just over three months before the elections. The PEC was approved in the Senate and now depends on the approval of the Chamber of Deputies. If approved, 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.

In addition to recognizing a state of emergency to create a “truck card” and expanding Auxílio Brasil and Auxílio Gás, the PEC was complemented to include the granting of a benefit for taxi drivers and a supplementary credit for the food program.

“The result is yet another measure that weakens the public spending ceiling and, consequently, increases the country’s fiscal risk. With the increase in fiscal risk, the exchange rate appreciation trend that began in early 2022 was reversed”, analysts at Genial Investimentos said in a note.

  • PEC ‘Kamikaze’: why it can harm and not help the Brazilian’s pocket

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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