12.11.202614:39:44UTC+00Brazilian Real Hits Lowest Since May

The Brazilian real depreciated towards 5.62 per USD in November, its weakest level since May of last year, amid growing expectations that a congressional vote on the government’s fiscal package will be postponed. Senate President Davi Alcolumbre indicated that if any lawmaker requests additional time to review the complementary fiscal adjustment bill, the debate could be delayed.

The bill bundles together measures aimed at curbing public spending and boosting revenue and, if approved, is expected to generate savings of R$50 billion to R$60 billion in 2027. The government has been under mounting market pressure to present credible fiscal adjustment plans after Brazilian assets sold off sharply following President Lula’s late-October reelection.

On the inflation front, annual consumer price growth accelerated to 4.63% in October from 4.58% in September, undershooting market forecasts of 4.74% but reaching a four-month high and staying above the Banco Central do Brasil’s 4.5% upper target range. With 12‑month inflation still exceeding the target, the central bank is expected to remain cautious about resuming its Selic rate‑cutting cycle.