Brazilian Real Stabilizes Around 5.24

2026-03-26 16:47 By Felipe Alarcon 1 min. read

The Brazilian real stabilized around 5.24 per US dollar on Thursday as higher than expected domestic inflation offset a strengthening greenback fueled by hawkish Federal Reserve bets.

Mid-month IPCA-15 data showed a 0.44% rise in March exceeding market forecasts and reinforcing expectations that the Central Bank of Brazil will maintain a restrictive Selic rate to combat persistent price pressures in food and personal expenses.

While the 12-month inflation rate eased to 3.90% it remains above the 3.0% target prompting a recalibration of local interest rates.

These domestic factors collided with a resurgent US dollar as investors weighed the end of a strike pause and Iran’s rejection of a US peace proposal which kept energy-driven inflation risks at the forefront of global markets.

Consequently the real remains under pressure from a broader flight to safety and rising Treasury yields despite the support from a hawkish local rate trajectory.



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