Brazilian Real Near Mid-2024 Highs

2026-01-29 13:22 By Felipe Alarcon 1 min. read

The Brazilian real strengthened past 5.20 per US dollar, testing its strongest levels since May 2024 as investors digested monetary signals at home alongside renewed weakness in the dollar.

Domestically, Copom’s decision to keep the Selic at a historically restrictive 15%, while emphasizing that any future easing will be cautious and conditional, continues to anchor a wide and attractive real yield differential, sustaining foreign carry and duration inflows into Brazilian assets.

That support has been reinforced by favourable terms-of-trade dynamics and steady demand for local fixed income, helping the currency remain resilient.

Externally, the dollar has softened amid policy uncertainty in Washington, political signals that tolerate currency weakness, and continued flows into real assets, all of which have reduced pressure on the real.

Still, upside momentum has moderated as domestic political and fiscal noise add to lingering concerns over the fiscal outlook.



News Stream
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