Brazilian Real Holds Firm as Trade Winds Shift and Rates Bite

INSUBCONTINENT EXCLUSIVE:
On April 24, 2025, the real trades at 5.7044 per dollar, its strongest in nearly three weeks.This follows a modest 0.26% gain on April 23,
when the real closed at 5.7041 per dollar
shape this resilience
for carry trades, as the interest rate gap with the US remains wide
The US Federal Reserve holds rates at 4.5%, which encourages capital to seek higher yields in Brazil.Trade flows also play a crucial role
Real Holds Firm as Trade Winds Shift and Rates Bite
(Photo Internet reproduction)In 2024, China increased soybean imports from Brazil by 28%, while cutting US purchases by nearly a third
the real
High interest rates and inflation weigh on economic growth, which analysts expect to slow to 1.6% in 2025.Fiscal challenges persist, as
public debt rises and the government faces calls for more spending to offset a cooling economy
indicators show the real consolidating gains after a sharp rally
The currency trades near its 50-hour and 200-hour moving averages, with support at 5.68 and resistance at 5.75.Volatility has declined, but
the market remains sensitive to global headlines and domestic policy shifts.ETF flows reflect shifting risk appetite
On April 22, U.S
assets
one of unbridled optimism