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[BUSINESS] · Brazil, United States · 100 sources

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Brazilian Real Strengthens as US Dollar Hits Two‑Month Low

The US dollar fell to R$ 5.06, its lowest level in almost two months, after core U.S. personal‑consumption‑expenditures (PCE) data showed a 0.1 % rise in June, below the 0.2 % market expectation. The weaker dollar was reinforced by the Federal Reserve’s decision to keep its benchmark interest rate unchanged between 3.5 % and 3.75 % for the fifth consecutive meeting, signalling that further hikes are unlikely in the near term.

The currency move lifted the Brazilian real and spurred foreign‑capital inflows, sending the Ibovespa up about 1.9 % to around 177,000 points. At the same time, Brent crude fell to US$ 86.88 a barrel and WTI to US$ 83.59, reflecting reduced risk‑premia as investors reacted to heightened Middle‑East tensions and the softer dollar.

Market commentary linked the dollar decline to the Fed’s stance, the modest PCE reading and the resulting carry‑trade appeal of emerging‑market assets, while noting that technical delays on Brazil’s B3 exchange had little impact on the overall market rally.

Entities

Brazil · Brazilian real · Brazilian real · Brazilian real · Brazilian real (BRL) · Brent crude oil · Core PCE price index · Federal Reserve · Ibovespa · Ibovespa · Kevin Warsh · U.S. Federal Reserve

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