Uncertainties in relation to the Proposal for Amendment to the Constitution (PEC) of the Precatório and the aversion to risk abroad made the market have a tense day. The dollar rose for the third session in a row, continuing above R$ 5.50. The stock market fell to its lowest level in just over a year.
The commercial dollar ended this Wednesday (17) at R$5.524, up R$0.024 (+0.45%). The price was falling for most of the morning, reaching R$ 5.47 in the day’s low, around 10am. However, it reversed the movement from the end of the morning and settled in the range between R$5.52 and R$5.53 in the closing hours of trading.
Despite today’s high, the US currency has fallen by 2.16% in the month. In 2021, the valuation reaches 6.46%.
The day was also turbulent on the stock market. The B3 Ibovespa index closed at 102,948 points, down 1.39%. The indicator is at the lowest level since November 12 of last year, when the global market was still under the strain of the result of the US presidential election.
In the foreign market, the day was marked by the general rise of the dollar, which rose against the currencies of emerging countries, with a relevant appreciation against the Chilean peso and the Turkish lira. The announcement that economic activity and inflation in several developed countries are rising higher than expected reinforces the expectation of interest rate hikes in advanced economies, which encourages the flight of resources from emerging countries, such as Brazil.
Internally, uncertainties about the processing of the PEC dos Precatório in the Senate increased pessimism in the financial market. Although the proposal releases BRL 91.6 billion outside the spending ceiling in 2022, economic analysts believe that this solution generates less impact on public accounts than an eventual public calamity decree that releases extraordinary credits (unforeseen expenses outside the spending ceiling) in next year’s Budget.
*With information from Reuters
