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Brazilian real strengthens as dollar falls to lowest level since June
On July 22 the U.S. dollar slipped to its weakest closing level since 2 June against the Brazilian real, trading around R$ 5.05 per dollar. The decline was driven by higher oil prices, a surge in foreign capital attracted by Brazil’s relatively high interest rates, and heightened geopolitical tension in the Middle East.
The stronger real helped lift the Ibovespa by more than 2 percent, pushing the index past the 177,000‑point mark (closing at 177,548 points). Gains were led by mining, oil and banking stocks, with Petrobras and Vale limiting the broader market losses. Trading volume on B3 reached roughly R$ 21 billion. The dollar’s year‑to‑date fall of about 8 percent and the positive flow of foreign funds—totaling US$ 17.9 billion through July—contributed to the rally.
Overall, the currency move and commodity‑price dynamics boosted Brazil’s equity market while keeping the real among the best‑performing emerging‑market currencies.