The Brazilian real strengthened to 5.65 per USD, remaining near the 8-month high of 5.6 on May 13th amid the outlook of improved trade flows with the US and a hawkish central bank. Data from the CAGED survey showed that more jobs were added to the Brazilian economy than expected in April. Similarly, data from the PNAD showed that the unemployment rate was sharply below expectations for the April quarter. The strong labor data added leeway for the central bank to hold its benchmark policy rate at the current restrictive level for a prolonged period. In its last meeting, the central bank delivered a 50bps hike on the rate to 14.75%, the highest since 2006. In turn, a US court blocked reciprocal tariffs that were mandated by President Trump last month, removing 10% tariffs on Brazil. Still, unease remained on the domestic market after the Ministry of Finance momentarily raised its Tax on Financial Transactions (IOF) to 3.5%, raising concerns that policymakers considered capital controls.
The USDBRL decreased 0.0007 or 0.01% to 5.7238 on Monday June 2 from 5.7245 in the previous trading session. Historically, the USDBRL reached an all time high of 6.75 in December of 2024. Brazilian Real - data, forecasts, historical chart - was last updated on June 2 of 2025.
The USDBRL decreased 0.0007 or 0.01% to 5.7238 on Monday June 2 from 5.7245 in the previous trading session. The Brazilian Real is expected to trade at 5.77 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.91 in 12 months time.