Brazilian Real Approaches Near 2-Year High

2026-04-02 13:57 By Andre Joaquim 1 min. read

The Brazilian real appreciated to 5.15 per USD in April, not too far from its strongest level since 2024 and significantly outperforming other emerging market currencies amid support from higher commodity prices and the outlook of a hawkish central bank.

US and Iranian authorities exchanged threats in a fresh bout of escalation to their conflict.

While the developments drove global markets to pivot away from riskier currencies, the resulting tightness in supply of key commodities lifted the price of major Brazilian exports, raising the inflows of dollars to the Brazilian financial centers.

Crude oil prices surged, in turn lifting costs of sugar ethanol and soybeans.

Separately, iron ore benchmarks were also higher.

In the meantime, the inflationary pressure drove the Central Bank of Brazil to signal it may suspend its cutting cycle if it sees signs of de-anchoring inflation expectations.

Brazil already faces real interest rates that are among the highest in the world.



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