Brazilian Real Hits Strongest Since May 2024

2026-02-23 14:37 By Felipe Alarcon 1 min. read

The Brazilian real appreciated past 5.16 per US dollar to hit its strongest level since May 2024 as global markets re-evaluated the attractiveness of high-yielding emerging market currencies in the wake of US trade policy shifts.

The advance was supported by the Central Bank of Brazils decision to hold the Selic rate at a historically restrictive 15%, maintaining a massive real-yield spread with January inflation at 4.44%.

This interest rate differential has intensified carry trade inflows, particularly as the US Supreme Court ruling against previous emergency tariffs initially dampened dollar demand.

Strengthening the currencies fundamental backing, Brazils January trade surplus reached $4.34 billion, driven by a 17.4% surge in exports to China and firming global oil prices.

The 15% US Section 122 surcharges now compete with the $180 billion in potential tariff refunds trickling back into the global financial system.



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