🗞Dollar reverses historic high and falls with Central Bank action and progress in Congress

The spot dollar reversed its upward trend and began to fall this afternoon, trading at R$$ 6.076 (-0.30%) after the Central Bank held two spot auctions, totaling US$$ 3.29 billion sold. Today's intervention marks the fourth consecutive day of foreign exchange action by the monetary authority, which sought to contain the extreme pressure on the exchange rate, after the currency reached an intraday high of R$$ 6.217, a historic record.

In addition to the Central Bank's action, the market reacted positively to reports of progress in Congress, with two projects from the spending cut package entering the Chamber's agenda. The move brings a momentary relief to volatility, also reflected in the dollar futures, which fell 1.19%, to R$ 6.086. Expectations now turn to the progress of the votes and the impact on public accounts in the short term.