Throughout the afternoon, the American currency gained momentum in the local market and rose at various times, albeit modestly, reaching its peak at R$5.8213, and ended the session down 0.15%.
After remaining stable throughout the afternoon, with constant changes of signal, the spot price firmed up in the final stretch of business and even outlined the breach of the technical floor of R$ 5.80, with new information about the measures of cost containment that is about to be announced by the government. Another meeting between the president and and ministers at Palácio do Planalto, sources reported that the plan will bring changes to the Continuous Payment Benefit (BPC), the minimum wage and the salary allowance, in addition to the already discussed changes to military pensions. There would be no changes to the health and education floors.
In recent days, rumors had circulated of cuts of around R$70 billion over the next two years and the adjustment of the minimum wage policy to the framework’s real spending growth rules. At the end of last week, the Minister of Finance, promised the announcement of the plan for this Monday (25) or tomorrow.
The influence of expectations for the package on business dynamics was evident throughout the trading session. In the morning, the dollar even retreated and operated below R$5.80, partially following the wave of devaluation of the American currency abroad. The real, however, was already underperforming its peers, such as the Mexican peso and the South African rand.
Throughout the afternoon, the American currency gained momentum in the local market and began to rise at various times, albeit modestly, reaching a peak of R$5.8213. With the loss of strength at the end of the day, the session ended down 0.15%, quoted at R$5.8055. Outside, the day was marked by a firm decline in the dollar in relation to strong currencies and most emerging currencies and commodity exporting countries.
According to analysts, the appointment of Scott Bessent as US Treasury Secretary in the next government eased fears of an increase in the public deficit and opened space for a relief in Treasury rates and a correction of the recent gains in the American currency. Among other currencies, the highlight is the appreciation of more than 1% in the Hungarian guilder and the Israeli shekel, the latter driven by the possibility of a ceasefire between Israel and Hezbollah.
*With information from Estadão Conteúdo
Posted by Carolina Ferreira
