FX.co ★ Brazilian Real Rebounds Sharply

The Brazilian real strengthened toward 5.22 per US dollar after President Donald Trump’s decision to postpone strikes on Iranian energy infrastructure sparked a sharp rebound in global risk sentiment. The move came after a bout of intense pressure on the currency, which had weakened toward 5.30 as investors reacted to record interventions in the Treasury market and a surge in oil prices. Domestically, markets are also digesting a change in economic leadership, with Dario Durigan sworn in as Finance Minister and vowing to preserve fiscal continuity following Fernando Haddad’s departure. Even with the recent relief in asset prices, the interest-rate outlook has turned markedly more hawkish, with year-end 2026 Selic projections climbing to 12.5% as persistent inflationary pressures constrain the Central Bank’s easing cycle.