Haddad’s meeting with Santander Brasil executives was “misinterpreted”, according to the minister; investors await Fed decision

The commercial dollar started the week on a high. Reached R$ 5,39 at the maximum this Monday (June 10, 2024). It recorded the highest level since January 4, 2024, the last time the North American currency was above R$5.40, when it closed at R$5.45.

At 12:20 pm, the commercial dollar was sold at R$3.36, an increase of 0.60%. Investors react to news about the fiscal policy of the Luiz Inácio Lula da Silva (PT) government. Part of the media said that the Minister of Finance, Fernando Haddad, had indicated, in a meeting with Santander Brasil, a contingency in the Budget in July, but that the decision would be Lula’s.

Haddad said that economic agents interpreted the speech wrongly. He stated that he signaled the possibility of a contingency if there was an increase in mandatory expenses above the Budget. According to him, there was no intention to declare an end to the new tax rule.

Abroad, foreign investors await the Fed’s monetary policy decision (Federal Reserve, the central bank of the United States) on Wednesday (June 12, 2024). The country’s interest rates are in the range of 5.25% to 5.50% per year.

The expectation of financial agents is to maintain interest rates at current levels. The statement will be essential to know when interest cuts will begin in 2024 in the USA.

Financial market analysts increased the estimate for the 2025 Selic rate to 9.25%, according to the Central Bank’s Focus Bulletin. They also increased the inflation forecast for 2024 to 3.90%.

Financial agents are preparing for the release of the IPCA (Broad National Consumer Price Index) on Tuesday (June 11, 2024) and the United States CPI (Consumer Price Index) on Wednesday (June 12, 2024).

Source: https://www.poder360.com.br/economia/dolar-se-aproxima-de-r-540-com-fiscal-e-exterior-no-radar/

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