empty
 
 

02.02.202618:30:34UTC+00Brazilian Real Pulling Back From Mid-2024 Highs

The Brazilian real slipped beyond 5.26 against the US dollar, retreating from its peak levels since May 2024. This movement was influenced by the strengthening of the US dollar and changing global interest rate dynamics, which lessened the attractiveness of high carry currencies like the real. Globally, the dollar’s resurgence followed a decline in January and was bolstered by strong US economic data and the nomination of Kevin Warsh as the upcoming Federal Reserve Chair. These developments heightened expectations of tighter liquidity and a more disciplined balance sheet, driving up US yields and increasing the opportunity cost of holding the Brazilian real. Domestically, while Brazil’s Central Bank (Copom) has kept the Selic rate at a tight 15%, officials have emphasized that any future rate cuts will depend on continued disinflation and fiscal prudence. This stance tempers expectations for any further gains from Brazil’s already appealing real yield advantage, providing minimal new support for the currency.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback