INSUBCONTINENT EXCLUSIVE:
The Brazilian Real gained ground against the US Dollar this Wednesday morning, with the USD/BRL trading at 5.7208, down 0.06% from
holiday break, testing the crucial 5.8000 support level
The market showed considerable pressure on this benchmark throughout Thursday before the break.Traders witnessed significant volatility upon
reopening, with the USD/BRL closing at 5.8080 yesterday, indicating a notable decline from previous sessions
rates currently at 14.25%
Market analysts expect another 75 basis point increase in May, potentially pushing the Selic rate to 15.00%.Brazilian Real Strengthens
Against Dollar as Commodity Exports Boost Currency
(Photo Internet reproduction)This contrasts sharply with shifting expectations for US Federal Reserve policy
for Fed rate cuts have prompted global investors to seek higher-yielding alternatives like the Brazilian Real
soared 16% to $8.22 billion in March, while manufactured goods shipments increased by 10.1%
Economic indicators present a mixed picture for Brazil.The financial market lowered its inflation forecast for 2025 to 5.57%, down from
Analysts have upgraded economic growth projections to 2% for 2025.Despite this positive adjustment, experts predict growth will slow in the
second half of the year due to high interest rates and global trade concerns
Technical indicators show the USD/BRL breaking below important support levels.The 5.80 mark, previously a significant support level, now
Trading volumes remained robust throughout previous sessions, with approximately $8.2 billion in spot market transactions recorded in
March.Market consensus suggests the Brazilian Real will face challenges later this year
Analysts maintain a cautiously optimistic short-term outlook while anticipating medium-term depreciation
Most forecasts place the Real at around 5.90 to the dollar by the end of 2025.
