The dollar opened lower against the Brazilian real on Friday, with investors watching a Senate vote on the government’s fiscal package. At about 9:02 the currency was down 0.06 percent, quoted at R$5.6484. Traders were also weighing fresh economic data due later in the morning.
Senate approves main text
The Senate approved the main text of the fiscal package late on Thursday by 45 votes to 31. Four points remained to be voted, after which the bill moves to the Chamber of Deputies. The government says the measures aim to contain the growth of public debt without cutting social policies.
The package sets stricter limits on public spending growth. It also allows for possible temporary blocking of certain mandatory expenses. Companies could see some tax benefits cut by up to 20 percent.
Investors weigh adjustment size
The package is estimated to affect public accounts by up to R$60 billion in 2027. Of that, R$50 billion is earmarked for meeting fiscal targets and R$10 billion for new expenses. Investors fear an insufficient adjustment would keep pressure on the dollar and on interest rates.
The dollar had risen to R$5.65 the previous day, its highest level since June 2025. Retail sales data from the IBGE were due at 9 a.m. on Friday. US producer prices for October were also in focus.
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