Dollar Ends Week Higher Amid Fiscal Policy Skepticism

The spot dollar closed the final session near flat at R$ 5.6549. Despite the modest daily result, the currency accumulated a 2.66% gain throughout the week. The movement reflects investor caution regarding the trajectory of Brazil's public debt.

Even with the approval of a fiscal bill in the Senate, financial agents remain doubtful about the measures' ability to balance government accounts. The approved package estimates an impact between R$ 45.1 billion and R$ 56.1 billion, but experts question whether this volume is sufficient to curb the growth of national indebtedness.

In the external scenario, the dollar also gained strength against other global currencies. The index that tracks the performance of the American currency against a basket of six developed market currencies rose 1.10% for the week. The repricing of the interest rate cycle in the United States contributes to this strengthening.

The financial market remains attentive to the next steps of the economic team in Brasília. Price formation through the end of the year will depend on budget decisions and future appointments to the Central Bank. Analysts continue to approach domestic optimism with caution.