The dollar fell sharply today (21) and approached R$ 5.30 amid negotiations to reduce the volume of resources to be excluded from the spending cap next year. The B3 (stock exchange) interrupted a sequence of three falls and rose almost 1%.

The commercial dollar closed this Monday sold at R$ 5.311, with a retreat of R$ 0.064 (-1.2%). The quotation had a day of volatility, reaching R$ 5.37 around 12:30pm. In the afternoon, the downtrend firmed, with the currency falling to R$ 5.30 at the day’s minimum, around 3:30 pm.

With today’s performance, the currency accumulates a 2.81% rise in November. In 2022, the dollar falls 4.75%.

In the stock market, the day was also marked by volatility. After alternating highs and lows, the Ibovespa index, B3, closed at 109,748 points, up 0.81%. Despite the worsening of restrictions on covid-19 in China, after the first deaths in months, some stocks recovered from falls in recent weeks because they became cheap and attracted buyers.

After days of instability, the financial market got some relief today after two senators presented alternative constitutional amendment proposals (PEC) to reduce the volume of funds that would be outside the federal spending cap in 2023.

Reducing the impact

The government filed a text that requested the exclusion of R$ 198 billion, but Senators Alesandro Vieira (PSDB-SE) and Tasso Jereissatti (PSDB-CE) suggested proposals that would reduce the impact to R$ 70 billion and R$ 80 billion, respectively.

Recent statements by President-elect Luiz Inácio Lula da Silva, that he intends to maintain fiscal responsibility without neglecting social responsibility, also helped to soften the mood.

The domestic market detached itself from the international scenario. The dollar fell in Brazil, despite rising abroad because of the increase in cases of covid-19 in China and new signals from the leaders of the Federal Reserve (Fed, North American Central Bank) of maintaining rigor in combating inflation in the United States.