US dollar fluctuates against Brazilian real amid global policy shifts

The US dollar has experienced volatility against the Brazilian real, characterized by slight fluctuations driven by both domestic and international factors.

On Friday, the dollar saw a minor increase of 0.11%, closing at R$ 5.1440. This movement occurred amid lower trading volumes and an external environment less favorable to risk assets, influenced by uncertainties regarding US monetary policy and oil prices. Despite a US$ 1 billion line auction by the Central Bank of Brazil, the session saw reduced trading compared to previous days.

In a preceding session, the dollar closed with a slight decrease of 0.23% at R$ 5.1393. This followed a morning surge triggered by the federal government's announcement of a 15% adjustment to the Bolsa Família program. However, the currency lost momentum in the afternoon, supported by global risk appetite and easing oil prices. The US Federal Reserve's decision to raise interest rates by 0.25 percentage points to a range of 3.75% to 4% per year was met with market accommodation, providing some relief to emerging market currencies like the real.