Brazilian Real at Strongest Level Since Mid-2024

2025-09-17 19:19 By Felipe Alarcon 1 min. read

The Brazilian real hovered around 5.3 per US dollar in September, its strongest level since June 2024, as investors digested the latest US Federal Reserve decision while awaiting the Brazilian Central Bank’s announcement.

The Federal Reserve cut interest rates by 25 basis points in September 2025, with Chair Powell noting that risks of higher and more persistent inflation have eased since April, framing the move as a ‘risk management’ cut rather than the start of a new easing cycle.

Only newly appointed Governor Stephen Miran voted for a larger 50 basis point reduction, resulting in fewer dissents than markets had anticipated.

Domestically, the Central Bank of Brazil is expected to maintain the Selic rate at 15% and signaled persistence in its hawkish stance to control inflation.

Recent data show moderation in economic growth while inflation remains contained, giving the central bank room to sustain a tight policy even as external conditions improve.



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