Dollar hits R$5.60 after Federal Reserve officials hint at faster tapering

RIO DE JANEIRO, BRAZIL – The commercial dollar in Brazil closed up 0.70% this Friday, trading at R$5.608.

The optimism with the possible acceleration in the processing of the PEC of Precatórios after the news that the government plans to modift the project ended up being exhausted throughout the trading session, also helped by more ‘hawkish’ (inclined to the withdrawal of stimulus) comments by two representatives of the Federal Reserve, Vice Chairman Richard Clarida and Director Christopher Waller.

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Both signaled that the pace of reduction of asset purchases (“taper”) may be accelerated amid increasingly worrying signs of inflation in the US.

With this, the dollar recorded its fifth consecutive rise. In the week, it accumulated a gain of 2.75% against the real (R$).

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