Brazil Finance Minister Cancels Europe Trip

SAO PAULO (Reuters) – Brazil Finance Minister Fernando Haddad canceled a trip to Europe this week, as stated by the ministry on Sunday. This decision comes amid market pressures for the government to implement promised spending-cut measures.

The Finance Ministry announced that Haddad will remain in Brasilia during the week at the request of President Luiz Inacio Lula da Silva. The focus will be on "domestic subjects," although further details were not provided.

On Friday, the U.S. dollar reached its highest closing level against the Brazilian real since May 2020 in spot trading, driven by investor anxiety over unclear local fiscal measures and the upcoming U.S. presidential election on Tuesday.

Government officials had indicated that measures would be announced following last weekend's municipal elections but failed to provide a specific timeline. Local newspaper Folha de S. Paulo reported that the spending-cut measures would likely not be revealed this week due to Haddad's intended trip to Europe.

Haddad was anticipated to travel to Europe from November 4-9, though his exact itinerary was not confirmed. The ministry noted that his travel plans would be resumed at an appropriate time.