As the U.S. released favorable economic figures and Brazil approached a national holiday, the dollar neared R$5.20, reflecting a broader upward trend.
On this critical day, as the Federal Reserve prepared to announce its monetary policy, the spot dollar ascended by 1.52%.
It closed at R$5.192 for buying and R$5.193 for selling—its highest closure since April 19.
By the evening, the nearest futures contract had climbed 1.01%, hitting 5,172 points. Throughout April, the U.S. currency saw a 3.53% surge.
Commercial dollar rates
- Selling: R$5.193
- Buying: R$5.192
Tourism dollar rates
- Selling: R$5.40
- Buying: R$5.22
As the Federal Reserve commenced its biannual meeting, anticipation grew that it would hold interest rates steady between 5.25% and 5.5% due to ongoing robust inflation in the U.S.
Predictions now show only about 35 basis points in potential Fed rate reductions this year, a stark decrease from the 150 points anticipated at the year’s start, according to LSEG figures.
This shift in expectations for U.S. monetary policy followed resilient economic and inflation data.
This sparked a notable reversal in global risk sentiment during April, though the mood brightened slightly as the month concluded.
Brazilian Real Faces Significant Depreciation
The dollar concluded the month with a 3.53% gain against the Brazilian real, marking its strongest monthly rise since the previous August’s 4.72% increase.
While this depreciation of the local currency was largely linked to international uncertainties, especially concerning the Fed, Brazil’s fiscal risk perception also deteriorated.
This deterioration followed the governmental easing of the 2025 primary result targets.
Diego Costa from B&T Câmbio emphasized the role of the end-of-April Ptax formation in morning trading volatility.
The Ptax, a benchmark exchange rate determined by Brazil’s Central Bank, is crucial for settling futures contracts.
Financial traders often seek to manipulate this rate at the month’s end to benefit their dollar positions, whether long or short.