Haddad's Europe Trip Canceled Amid Fiscal Pressure

Brazil Finance Minister Fernando Haddad canceled his Europe trip amid pressure to present spending-cut measures as promised by the government. Investors remain anxious over a lack of fiscal details coupled with the U.S. presidential election, causing fluctuations in currency value. Haddad remains in Brasilia by request of President Lula.

Brazil's Finance Minister Fernando Haddad has canceled his upcoming trip to Europe amid mounting pressure from the financial markets for the government to unveil promised spending-cut measures. The Finance Ministry announced on Sunday that Haddad will stay in Brasilia at the behest of President Luiz Inacio Lula da Silva.

Amidst concerns over fiscal policy, the U.S. dollar surged to its highest closing value against the Brazilian real since May 2020 last Friday, driven by investor uncertainty regarding domestic fiscal plans and the forthcoming U.S. presidential election. The Ministry stated Haddad would now focus on 'domestic subjects,' without providing further details.

Despite initial reports that the spending measures would be disclosed post last weekend's municipal elections, no precise timeline has been given. Local news outlet Folha de S. Paulo suggested earlier that the measures are unlikely to be presented this week, citing Haddad's now-canceled European itinerary, initially set for Nov. 4-9.

(With inputs from agencies.)