Brazilian Real Strengthens to 5.11 per Dollar as BCB Cuts Selic 25 Basis Points
Updated
Updated · TradingView · Aug 5
Brazilian Real Strengthens to 5.11 per Dollar as BCB Cuts Selic 25 Basis Points
3 articles · Updated · TradingView · Aug 5
Summary
The real rose to 5.11 per U.S. dollar after touching a three-week low of 5.145 on Aug. 4, rebounding as Brazil’s central bank signaled restraint on further easing.
A 25-basis-point cut took the Selic rate to 14.0%—its lowest since March 2025—but Copom said any additional reductions will depend on incoming data and the inflation outlook.
The cautious tone matters because Brazil still offers a wide yield advantage after the Federal Reserve last week held its benchmark rate at 3.50%-3.75%.
Copom also pointed to Middle East conflicts and uncertainty over advanced-economy monetary policy, underscoring the external risks shaping emerging-market currencies.