The dollar fell sharply against the real on Friday, reversing the eve’s gains after attempts by the elected government to reassure markets about the risk of fiscal turmoil under the administration of Luiz Inácio Lula da Silva, with nods towards spending cuts , while the possibility of the Transition PEC being squashed in Congress provided additional relief.
Investors also reacted positively to the departure of former finance minister Guido Mantega from Lula’s transition team.
At 9:13 am (Brasília time), the spot dollar retreated 0.87%, to R$ 5.3593 on sale.
On B3, at 9:13 am (Brasília time), the first contract dollar futures contract fell 1.29%, to R$ 5.3745.
The day before, the spot US currency rose 0.45%, to R$5.4064 on sale, the highest closing price since last July 22 (R$5.4976).
In this session, the Central Bank will auction up to 16,000 traditional foreign exchange swap contracts for the purpose of rolling over the maturity of December 1, 2022.
Source: CNN Brasil
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