Brazilian Real Hits 1-Month High After BCB

2025-11-06 13:40 By Felipe Alarcon 1 min. read

The Brazilian real strengthened toward 5.3 per US dollar, hitting a one-month high after the central bank kept the interest rate at 15% and issued a cautious, near-hawkish statement that raised the bar for near-term cuts, preserving Brazil’s carry advantage.

A modest downward tweak to the inflation projection, together with the reaffirmation that 15% is consistent with convergence, signalled progress on disinflation without sacrificing credibility and helped compress exchange rate premia.

That policy signal coincided with large net FX inflows on November 5 as nonresidents moved into local currency instruments and swaps, buying reais to fund those positions.

At the same time the US dollar eased from recent peaks as markets pared some Fed cut odds and safe-haven dollar demand softened, removing an external headwind for the real.



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