BRL Strengthens Slightly on Strong GDP and Easing Oil Prices

2026-05-29 21:04 By Isabela Couto 1 min. read

The Brazilian real strengthened slightly to 5.03 per USD in late May as the US dollar softened and oil prices retreated.

Signs emerged that the US and Iran may be closer to a formal agreement, with reports indicating that both countries have reached a preliminary understanding, although US President Donald Trump has yet to endorse the terms.

The prospect of restored oil flows through the Strait of Hormuz eased global inflation concerns and weighed on the dollar.

Domestically, stronger-than-expected GDP data reinforced expectations that the BCB will maintain a hawkish stance.

Brazil’s economy grew 1.1% in the first quarter from the previous three months, accelerating from 0.3% in Q4 2025 and marking the strongest expansion in a year.

The data supported expectations of higher-for-longer interest rates, boosting the attractiveness of Brazilian assets and underpinning demand for the real.



News Stream
BRL Strengthens Slightly on Strong GDP and Easing Oil Prices
The Brazilian real strengthened slightly to 5.03 per USD in late May as the US dollar softened and oil prices retreated. Signs emerged that the US and Iran may be closer to a formal agreement, with reports indicating that both countries have reached a preliminary understanding, although US President Donald Trump has yet to endorse the terms. The prospect of restored oil flows through the Strait of Hormuz eased global inflation concerns and weighed on the dollar. Domestically, stronger-than-expected GDP data reinforced expectations that the BCB will maintain a hawkish stance. Brazil’s economy grew 1.1% in the first quarter from the previous three months, accelerating from 0.3% in Q4 2025 and marking the strongest expansion in a year. The data supported expectations of higher-for-longer interest rates, boosting the attractiveness of Brazilian assets and underpinning demand for the real.
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