INSUBCONTINENT EXCLUSIVE:
The Brazilian real gained ground against the US dollar on March 12, 2025
Exchange rate data shows the USD/BRL pair trading at 5.81, continuing its downward trend after closing at 5.8117 yesterday with a notable
The president announced an additional 25% tariff on Canadian steel and aluminum imports on Tuesday morning, raising the total tariff to
50%.Later statements from Trump suggesting he might reconsider these decisions provided immediate relief to emerging markets
remained flat in January compared to December, disappointing economists who projected 0.5% growth
Footing at R$5.81 Despite Flat Industrial Production Data
(Photo Internet reproduction)Technical analysts note the USD/BRL pair retreated from key resistance levels around R$5.88-5.90
Support now sits at R$5.78, while the 200-day moving average hovers near R$5.80.Rising Trading Volumes and Inflation Data in FocusTrading
volumes increased approximately 15% compared to the previous session
Exporters took advantage of still-elevated dollar levels above R$5.80 while institutional investors adjusted positions.Markets remain
Both countries will publish critical consumer price indices that could significantly influence central bank policy
expectations.Year-to-date, the real has strengthened 7.19% against the dollar
This stands in stark contrast to its 27.45% depreciation during 2024, showing remarkable recovery despite ongoing global trade
Higher inflation paired with weak economic activity in the United States might strengthen the dollar globally, potentially pressuring
emerging market currencies.
