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Brazil’s Real Edges Higher as Dollar Nears R$5.40 Before Fed Speeches

Markets look to Fed remarks for cues on upcoming rate moves.

Overview

  • Around 9:15 a.m. Brasília time, the commercial dollar traded at R$5.4032, down 0.13% on the session.
  • The real ranked among the ten strongest movers versus the dollar out of 33 highly traded currencies tracked by Valor.
  • Traders are recalibrating bets around continued U.S. Federal Reserve cuts and the prospective start of reductions in Brazil’s Selic rate.
  • Analysts flag the likelihood of heavier dollar outflows from Brazil this week, which could pressure the cupom cambial and the exchange rate, with potential electoral noise also on the radar.
  • The commercial dollar sets the benchmark for major transactions, while the tourism dollar is typically higher due to fees, with exchange swings affecting travel costs and imported goods.