# Brazilian Real Stalls on Plans for Dividend Tax Hike, Finds Support on Data

> The Brazilian real weakened in mid-week trading on July 7, 2021 as investors weighed economic data and government plans to raise dividend taxes. Retail sales rose 1.4% in May, services PMI rose to 53.9 in June, and auto production fell 13.4% in June.

- Date: 2021-07-07 · published 2021-07-07T12:00:00.000Z
- Category: policy · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/9911-brazilian-real-stalls-on-plans-for-dividend-tax-hike-finds-support-on-data
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A proposed dividend tax increase is a policy risk that can weaken the real and weigh on investor sentiment, while mixed activity data points to a slower recovery in domestic meat and feed demand.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-03-02 | [Brazilian stocks, currency fall as tax hikes spook investors - Markets - Business Recorder](https://feedsoft.ai/events/12206-brazilian-stocks-currency-fall-as-tax-hikes-spook-investors-markets-business.md) | +2.9% | +3.7% |
| USDBRL | 2025-01-22 | [Brazilian government officials renew fiscal balance pledge](https://feedsoft.ai/events/26713-brazilian-government-officials-renew-fiscal-balance-pledge.md) | -2.8% | -5.2% |
| USDBRL | 2017-05-18 | [Brazil Real Plunges Against Dollar After Report President Temer Encouraged Bribes \| Fox Business](https://feedsoft.ai/events/4358-brazil-real-plunges-against-dollar-after-report-president-temer-encouraged.md) | +5.6% | +5.6% |
| USDBRL | 2025-05-22 | [(BRL/USD) Real Sells Off as Brazil Taxes Remittances to Boost Budget - Bloomberg](https://feedsoft.ai/events/24891-brl-usd-real-sells-off-as-brazil-taxes-remittances-to-boost-budget-bloomberg.md) | -0.2% | -2.7% |
| USDBRL | 2024-11-29 | [Brazil's finance minister, Congress leaders seek to calm markets on tax change concerns](https://feedsoft.ai/events/12460-brazil-s-finance-minister-congress-leaders-seek-to-calm-markets-on-tax-change.md) | +1.7% | +5.6% |

## Sources

- fxdailyreport.com: https://fxdailyreport.com/brazilian-real-stalls-on-plans-for-dividend-tax-hike-finds-support-on-data/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.