Dollar drops to R$5.28 with China and Transition PEC

On a day marked by protests in China and the beginning of the Transition Proposed Amendment to the Constitution (PEC) in the Senate, the dollar fell to less than R$ 5.30, reaching the lowest level in 20 days. The stock exchange rose by almost 2% and approached 111 thousand points. The commercial dollar ended this Tuesday (29) sold at R$ 5.288, down R$ 0.079 (-1.46%). The quotation operated downwards throughout the session, closing close to the lows of the day. The US currency reached its lowest level since November 9 (R$ 5.18). The currency accumulates a high of 2.36% in November and drops 5.16% in 2022. The stock market also had a day of recovery. The B3 Ibovespa index closed at 110,910 points, up 1.96%. The indicator was driven by shares of mining, oil and steel companies, which reflected the expectation that the Chinese government may ease the zero tolerance policy against covid-19 after the protests that took over the country’s main cities. mainly benefited countries that export commodities (primary goods with international quotation), such as Brazil. This is because an eventual relaxation of social restrictions in the Asian country would help to increase the consumption of raw materials in the second largest economy on the planet. to begin to be appreciated by the Constitution and Justice Committee of the House. The current text provides for the exclusion of up to R$ 198 billion from the spending ceiling on a permanent basis, but the PT announced its willingness to negotiate the value and extent of the withdrawal, which increased the expectation that the impact will be smaller than initially request.*With information from Reuters

Agência Brasil