Dollar drops to R$ 5.27 after approval of the Transition PEC

Reflecting the reopening of the Chinese economy and the reduction in the value of the Proposed Amendment to the Constitution (PEC) of the Transition, the dollar had a slight retreat, after approaching R$ 5.20 at the beginning of the day. The stock exchange partially recovered from yesterday’s fall (5) and closed at 110,000 points.

The commercial dollar ended this Tuesday (6) sold at R$ 5.27, down R$ 0.013 (-0.25%). The quotation started the session at a sharp low, dropping to R$5.21 at around 10:00 am, but started to operate close to stability during the afternoon.

The US currency accumulates a high of 1.31% in December. The currency drops 5.49% in 2022.

The stock market partially recovered from yesterday’s fall (5), but lost strength during the afternoon. The B3 Ibovespa index closed at 110,189 points, up 0.72%. The indicator rose 1.11% around 12:00, but slowed down throughout the afternoon.

In the domestic scenario, investors were attentive to the vote on the Transition PEC in the Senate Constitution and Justice Committee. After an agreement, the fiscal impact of the proposal fell from R$ 198 billion to R$ 168 billion, with the exception period for spending outside the ceiling reduced from four to two years.

In the foreign market, the dollar had a day of decline across the planet, especially in emerging countries, with the prospects of reopening the Chinese economy after the easing of restrictions against covid-19. Furthermore, a technical adjustment has taken place after the last few days’ highs, with some big investors selling the US currency to pocket recent gains.

*With information from Reuters

Translated to english by RJ983

From Brazil, by EBC News