On Thursday (12), the spot dollar closed the day up 0.90%, quoted at R$ 6.01. The spot dollar advanced against the real this Friday (13), as investors awaited new news about the progress of the government's fiscal package in Congress and remained cautious in a session with a relatively empty agenda.

At 2:30 pm, the spot dollar rose 1.47%, to R$ 6.073 on sale. At the same time, the Ibovespa, the benchmark for the Brazilian stock market, fell 0.29%, to 125.6 thousand points. Last Thursday (12), the US currency closed the day up 0.90%, quoted at R$ 6.0128.

National Scenario

The market's concerns about the trajectory of the country's public accounts continue to be the main focus in the foreign exchange market and investors' attention should turn to Congress, awaiting progress on the spending containment measures proposed by the government.

“The market is in a relatively wait-and-see mode, keeping an eye on the government's political articulation for voting on the fiscal package before the recess,” said Fernando Bergallo, director of operations at FB Capital. “In short: wait-and-see mode and volatility,” he added.

On the data front, the Central Bank reported that its Economic Activity Index (IBC-Br), a signal of the Gross Domestic Product (GDP), registered a 0.1% increase in October compared to the previous month.

The expectation in a Reuters survey for the month's result was a 0.2% drop.

“The IBC-Br will not change investors' perceptions much, however, this idea that the economy and the labor market are more heated was one of the points that has been constantly cited by the Central Bank, which makes up a scenario of inflationary risks”, said Leonel Mattos, Market Intelligence analyst at StoneX.