The dollar soared on Monday (28), with the market reacting badly to the government’s definition that the Citizen Income, a replacement for Bolsa Família, will be funded by resources that will not come from spending cuts.
At the close of the session, the US currency in cash closed up 1.46%, to R $ 5.6351 on sale. At the day’s low, the currency reached R $ 5.5145, down 0.71%.
Read more: Market raises inflation forecast for the 7th time in a row
This is the highest level since May 20 (R $ 5.6902), a period in which the currency had been beating successive records. On the 13th of that month, the price closed at R $ 5.9012, the historic maximum for closing the session.
The announcement of the creation of Renda Cidadã has shaken investor confidence in an expense reduction agenda that could contain the ongoing deterioration of public accounts – considered the most serious macroeconomic problem in Brazil.
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