[Brazil] - Dollar Climbs to R$ 5.79 Amid Trump Tariff Threats and Brazil's Welfare Package Concerns

INSUBCONTINENT EXCLUSIVE:
The Brazilian real weakened for the second consecutive day, closing at R$5.7936 against the dollar on February 7, 2025, as fiscal
uncertainties and U.S
tensions spurred by former U.S
R$5.8086, while the DXY dollar index rose 0.35% to 108.037 points
restraint.Minister Wellington Dias confirmed plans to review the program by March, citing soaring food prices as a critical driver
warnings overshadowed mixed U.S
labor data
high interest rates, with traders pricing a 91.5% chance of no March rate cuts.Currency TurbulenceFedWatch data indicates just one
25-basis-point reduction by year-end, likely in June
managing inflation if welfare spending rises
Analysts warn prolonged U.S
rate stability could further strain emerging markets, keeping the dollar buoyant against risk-sensitive currencies like the real.The