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USDBRL Bounces After Testing Psychological 5.00 Level

BRAZIL
  • After breaching the 5.00 level to the downside yesterday, USDBRL has opened around 0.65% higher to 5.04. Risk-off sentiment likely to take the short-term shine off the world’s best performing currency in 2022, although the impact may be somewhat insulated by the surge in the commodity complex.
  • The spike in oil prices is likely to heat up the local debate on a bill aimed at cutting fuel taxes to reduce prices for consumers. For reference, Brazil’s Senate bill that changes states fuel tax had its vote postponed due to no agreement on bill’s text on Wednesday. The Senate decided to postpone bill vote to March 8.
  • Former President Luiz Inacio Lula da Silva grants interview to Brazilian radios.
  • Petrobras Revenue Hits Record as It Resists Cheap Fuel Calls
    • Surging oil prices delivered Brazil’s state-controlled oil company record revenue last year, allowing it to reduce debt and increase investor payouts while President Jair Bolsonaro grapples with political backlash over high gasoline prices. (BBG)
  • Treasury auctions fixed-rate LTN local notes due 2022, 2024 and 2025; fixed-rate NTN-F local notes due 2029 and 2033.

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