BRL Weakens After BCB and Fed Rate Decisions

2026-06-18 13:54 By Isabela Couto 1 min. read

The Brazilian real traded above 5.15 per USD in June, weakening after the latest interest rate decisions by Brazil’s central bank and the US Federal Reserve.

The Monetary Policy Committee cut the Selic rate by 0.25 percentage points to 14.25% per year, while leaving its next steps open and dependent on incoming data.

In the US, the Federal Open Market Committee kept its benchmark rate unchanged at 3.50%-3.75%, but signaled a hawkish outlook.

The move in the currency reflected a worsening outlook for the interest rate differential between Brazil and the US, a key factor for foreign investors.

Lower expected rates in Brazil and higher-for-longer rates in the US reduce the appeal of real-denominated assets, supporting the dollar against the real.

Meanwhile, oil prices fell after the signing of a US-Iran agreement aimed at ending the conflict and reopening the Strait of Hormuz, easing energy-driven inflation expectations.



News Stream
BRL Weakens After BCB and Fed Rate Decisions
The Brazilian real traded above 5.15 per USD in June, weakening after the latest interest rate decisions by Brazil’s central bank and the US Federal Reserve. The Monetary Policy Committee cut the Selic rate by 0.25 percentage points to 14.25% per year, while leaving its next steps open and dependent on incoming data. In the US, the Federal Open Market Committee kept its benchmark rate unchanged at 3.50%-3.75%, but signaled a hawkish outlook. The move in the currency reflected a worsening outlook for the interest rate differential between Brazil and the US, a key factor for foreign investors. Lower expected rates in Brazil and higher-for-longer rates in the US reduce the appeal of real-denominated assets, supporting the dollar against the real. Meanwhile, oil prices fell after the signing of a US-Iran agreement aimed at ending the conflict and reopening the Strait of Hormuz, easing energy-driven inflation expectations.
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