The Brazilian real weakened past 6.05 per USD, retreating from a one-month high of 6.01 reached on January 15th, as heightened uncertainty stemming from U.S. President Trump’s executive orders dampened emerging market sentiment. Proposals for tariffs on Mexico, Canada, and the EU spurred risk aversion, weighing heavily on currencies like the real. Meanwhile, Trump’s emphasis on boosting U.S. oil production and the lack of specific trade actions against China pressured commodity prices, eroding Brazil’s foreign currency inflows. Domestically, fiscal concerns persist despite President Lula’s efforts to enhance ministerial oversight and signal fiscal prudence. Investor skepticism about structural reforms, combined with inflationary pressures and softer commodity markets, has amplified capital outflows, further weakening the real.
You are viewing a single comment's thread from: