The Brazilian real rose to 5.17 per USD from the three-month low of 5.22 on July 2nd as weak labor data from the US threatened to stretch the rate differential between the Fed and the BCB. The interest rate differential remains supportive for the real, with Brazil's benchmark Selic rate at 14.25% compared with the US policy range of 3.50%-3.75%. The wide yield gap continued to attract foreign inflows and support the Brazilian currency. Domestic gross public debt rose above forecasts in May, while primary deficit was wider than expected. The deterioration in fiscal accounts reinforced expectations of higher-for-longer borrowing costs and persistent upward pressure on interest rates. In addition, Brazil’s annual inflation rose past 4.8% in the first half of June, above the central bank's upper target band of 4.5%.
The USD/BRL exchange rate fell to 5.1855 on July 6, 2026, down 0.01% from the previous session. Over the past month, the Brazilian Real has strengthened 0.37%, and is up by 5.52% over the last 12 months. Historically, the USDBRL reached an all time high of 6.75 in December of 2024. Brazilian Real - data, forecasts, historical chart - was last updated on July 6 of 2026.
The USD/BRL exchange rate fell to 5.1855 on July 6, 2026, down 0.01% from the previous session. Over the past month, the Brazilian Real has strengthened 0.37%, and is up by 5.52% over the last 12 months. The Brazilian Real is expected to trade at 5.14 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4.99 in 12 months time.