Brazilian Real Holds Near 5 per USD

2026-04-20 14:29 By Juan Quintana 1 min. read

The Brazilian real is trading around 4.98 per dollar, retreating to levels seen in mid-April.

This upward pressure on the USD/BRL pair is driven by a global strengthening of the greenback (DXY at 98.16) following Israel's attack on Iran, which has triggered widespread risk aversion.

Simultaneously, crude oil prices have surged 4.6% to $87.75 due to potential supply disruptions in the Strait of Hormuz.

Although Brazil is a net oil exporter, the "flight to quality" sentiment currently prevails; the dollar's strength and geopolitical uncertainty are neutralizing the benefits of higher commodity prices.

Consequently, the Brazilian currency remains volatile as it tests key technical resistance levels.



News Stream
Brazilian Real Holds Near 5 per USD
The Brazilian real is trading around 4.98 per dollar, retreating to levels seen in mid-April. This upward pressure on the USD/BRL pair is driven by a global strengthening of the greenback (DXY at 98.16) following Israel's attack on Iran, which has triggered widespread risk aversion. Simultaneously, crude oil prices have surged 4.6% to $87.75 due to potential supply disruptions in the Strait of Hormuz. Although Brazil is a net oil exporter, the "flight to quality" sentiment currently prevails; the dollar's strength and geopolitical uncertainty are neutralizing the benefits of higher commodity prices. Consequently, the Brazilian currency remains volatile as it tests key technical resistance levels.
2026-04-20
Brazilian Real Two Years High
The Brazilian real rose 0.21% to 4.9 per USD, reaching its strongest level in two years. This move is driven by the reopening of the Strait of Hormuz, a major breakthrough that has sparked global optimism and caused the US dollar to drop (DXY -0.29%). The currency has extended its rally seen since late March, as the fall in the dollar effectively offsets the pressure from an 12% collapse in oil prices.
2026-04-17
Brazilian Real Hits 6-Week High
The Brazilian real strengthened to around 5 per USD, reaching its strongest level since early March. This appreciation is supported by a retreat in the dollar, increasing appetite for emerging market assets. The currency continues to benefit from a high-interest-rate environment, with the Selic rate at 14.75% providing a significant real yield against an inflation rate of 4.14%. While price stability remains a priority, the attractive carry-trade appeal and a robust trade balance highlighted by exports growing 10.0% year-on-year to $31.60 billion in March 2026 continue to provide solid support for the real's current performance.
2026-04-15