Brazilian Real Rebounds to Early December Highs

Trading Economics
2026.01.21 15:28
portai
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The Brazilian real has strengthened past 5.33 per US dollar, marking its highest level since early December. This rebound comes as global markets shift from US assets to higher-yielding emerging markets, driven by tensions between the US and Europe affecting confidence in American assets. Despite softer inflation readings, Brazil continues to attract foreign inflows, maintaining a favorable yield differential that supports real-denominated investments.