U.S.-Russia Negotiations and Brazil’s Currency Auction Drive Dollar to 2025 Low
Brazil’s Central Bank intervened in the foreign exchange market through a dollar sale with a repurchase agreement, selling $3 billion at a rate of R$5.7046. This operation aimed to roll over maturities scheduled for March 6, with repurchases set for October 2, 2025.
Currency specialist Nicolas Gomes from Manchester Investimentos noted that this intervention helped ease pressure on the Brazilian market despite broader global dollar strength.
At its peak during the session, the dollar reached R$5.7259 (+0.23%) but later dropped to an intraday low of R$5.6755 (-0.65%) by midday. Gomes remarked that a range between R$5.60 and R$5.70 aligns better with current economic fundamentals after the highs seen in late 2024.
He added that no significant indicators suggest further sharp declines in the short term. On the global stage, U.S.-Russia talks in Riyadh captured attention. Both nations sought pathways to end the war in Ukraine.
Russian Foreign Minister Sergei Lavrov described the discussions as constructive, with both sides agreeing to restore diplomatic cooperation fully. However, tensions persisted as Russia demanded NATO reverse its 2008 commitment to Ukraine’s potential membership.
Ukrainian President Volodymyr Zelenskiy emphasized that no peace deal could bypass Ukraine’s involvement and postponed his visit to Saudi Arabia.
Brazil’s Currency and Debt Markets React
Despite geopolitical uncertainties, Brazil’s domestic market saw limited catalysts for further currency movement on Tuesday. Alongside its auction, Brazil’s Central Bank sold 15,000 traditional currency swap contracts maturing in April 2025 to manage market liquidity.
Separately, Brazil’s Treasury announced a $10-year bond issuance in international markets, maturing in 2035. The operation aims to enhance liquidity for sovereign debt in dollars and provide benchmarks for corporate issuers. It also seeks to preemptively refinance foreign currency obligations.
As of late trading, the U.S. Dollar Index (DXY), which measures the dollar against six major currencies, rose 0.30% to 107.040, reflecting broader global strength despite its decline against the real.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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