FX.co ★ Brazilian Real Rebounds from 11-Week Lows

The Brazilian real appreciated beyond 5.85 per USD, bouncing back from an eleven-week low of 6.01 observed on April 8th. This recovery was driven by the easing of global trade tensions and stronger commodity prices, which helped restore investor confidence. The upturn came after President Trump announced a 90-day suspension on reciprocal tariffs for most countries, with the exception of China, where tariffs were increased to 125%. This significant change in tone alleviated fears of a protracted global trade war. Consequently, the moderation in trade-related risks reignited risk appetite, encouraging capital inflows back into emerging markets. Additionally, improved oil prices reinforced this positive momentum by enhancing Brazil’s export prospects and alleviating some of the cost pressures that had been affecting domestic producers. Although the central bank remains cautious due to persisting inflationary pressures and external uncertainties, the recent stabilization of the real signifies a realignment of global market expectations and a more favorable outlook for trade-sensitive assets.