Brazilian real steadies as dollar falls to R$5.12 amid Copom meeting and Bolsonaro ticket announcement

The Brazilian dollar closed at R$5.1282 on Wednesday, a 0.05% decline, as investors adopted a cautious stance while waiting for the Central Bank’s Committee of Monetary Policy (Copom) to announce its interest‑rate decision later in the day. Market participants largely anticipate a 0.25‑point cut to the Selic rate, moving it from 14.25% to 14%, a view supported by B3’s Copom options indicating a 94.75% probability of a reduction. Rebecca Nossig described the trading environment as one of “small position adjustments” and “cautious posture” ahead of the meeting.

In the political arena, Flávio Bolsonaro announced Alfredo Gaspar as his vice‑presidential running mate, a move that analysts said diverged from market expectations. ING’s Chris Turner noted that neither Bolsonaro nor President Lula appears committed to fiscal austerity, adding to the scrutiny of the election calendar that runs through October.