Good morning! Today, the Dollar-Real exchange rate rise is a marker for Brazil’s economic risks. A controversial fuel prices bill makes it through Senate. Musk and Starlink deal comes under the microscope.
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Worth a fiver, once again
Brazilian markets were the early winners of the year, but as finance reporter Ana Ferraz warned in February, caution was required. Local assets have been disrupted in recent weeks due to concerns about the government’s fiscal situation. On Monday, the dip went further as Brazil was caught up in a global sell-off that pushed the American S&P 500 index firmly into a bear market (20 percent below its peak).
- The Brazilian Real lost over 2.5 percent against the U.S. Dollar, which again took the foreign exchange currency rate above the psychological mark of USD 1 : BRL 5. Now, the dollar is worth 5.11.
- Meanwhile, the Ibovespa stock market index crashed by 2.7 percent. The index is 15.6 percent below the April 1 peak, dangerously flirting with bear market levels.
Stock woes. Shares of firms...