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Welfare Reform Vote Causes Dollar to Fall Sharply; Shares Set New Record High

RIO DE JANEIRO, BRAZIL – On Tuesday, October 22nd, the commercial dollar closed at R$4.076. This was the sharpest drop in one day since September 4th, when it tumbled by 1.79 percent.

On the day the Senate voted on the Social Welfare reform in the second round, the dollar fell the most in almost two months, while the stock market once again broke a record. (Photo: Internet Reproduction)

In the stock market, the day was one of excitement. After breaking a record on Monday, October 21st, the B3 (formerly São Paulo Stock Exchange) Ibovespa index closed the day at 107,381 points, up 1.28 percent.

The stock market traded high, and the dollar dropped throughout the session.

However, after the approval of the Social Welfare reform in the second round of the Senate Constitution and Justice Committee at the end of the morning, investors increased optimism.

At present, the primary text of the Social Welfare reform is being discussed in the Senate Plenary. The House will vote on four amendments after considering the base text.

In the overseas scenario, the trading session was fueled by the relief in trade tensions between the United States and China. The Chinese deputy foreign minister said yesterday that negotiations with President Donald Trump’s government are progressing.

Source: Agência Brasil, NHK

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