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BRL Rally Pauses, Bolsonaro May Leave Hospital Today

BRAZIL
  • The firmer US dollar prompted a small bounce in USDBRL after significant weakening this week. The pair was up well over 1% before a small Real recovery led us to close around 5.11 on Thursday. Minor inflation data this morning comes in broadly in line:
    • Brazil's IPC-S Weekly Inflation Index 0.88% M/m; Est. 0.89% (BBG)
    • Brazil's July IGP-10 Inflation Index 0.18% M/m; Est. 0.17% (BBG)
  • President Bolsonaro said that his health condition is progressing, pushing away the possibility of undergoing a surgery, according to an interview granted to Rede TV channel. He also said that he may be discharged today.
  • Sao Paulo state Governor Joao Doria said he tested positive for Covid-19, according to a publication in his Twitter account. He has had two doses of the Sinovac vaccine and this is the second time he has contracted the virus.
  • Progressiveness in dividends taxation is being discussed with the Economy Ministry Tax Secretariat, reform bill rapporteur Congressman Celso Sabino said during an online event. (BBG)

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