Dollar Slips to R$5.36 as Real Logs 1% Weekly Gain

Overview

• The spot dollar fell 0.43–0.44% on Friday to about R$5.365 after touching an intraday low near R$5.3529.
• For the week, the greenback weakened roughly 1.08–1.10% against the real, even as the DXY held above 99.
• Brazil’s December IPCA rose 0.33%, the lowest December since 2018, a reading that tempered bets on a January Selic cut, with some managers citing March as a possible start to easing.
• The U.S. payrolls report showed 50,000 jobs added in December and unemployment at 4.4%, reinforcing market odds near 95% that the Fed keeps rates unchanged this month.
• Traders cited the end of adverse December FX seasonality, reduced political noise during the parliamentary recess, a near 2% rise in oil prices, and a partial unwind of an election-related risk premium as tailwinds for the real.