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[BUSINESS] · Brazil · 21 sources

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Brazilian Real Gains as Dollar Slides After Copom Cut

The Central Bank of Brazil’s monetary policy committee (Copom) reduced the Selic benchmark rate by 0.25 percentage points, bringing it to 14% after a series of cuts. The move, combined with a firmer tone from the committee, prompted the U.S. dollar to fall to around R$5.10 per unit in the Brazilian market, while the real strengthened modestly against the greenback.

Higher oil prices—brent futures above US$80 a barrel—boosted Brazil’s terms of trade, further supporting the real. Market participants also noted the political backdrop: presidential candidate Flávio Bolsonaro announced Alfredo Gaspar as his vice‑presidential running mate, adding election uncertainty to the mix. Investors expect the possibility of additional Selic reductions but remain cautious amid the political climate.

Despite the domestic dollar weakness, the broader dollar index (DXY) stayed near the 100‑point level as the greenback rose in most other markets. The Colombian peso continued to outperform other emerging‑market currencies, drawing attention from carry‑trade investors.

Entities

Alfredo Gaspar · Banco Central do Brasil · Brazilian real · Central Bank of Brazil · Copom · Flávio Bolsonaro · ING · Luiz Inácio Lula da Silva · U.S. dollar · US dollar

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