19.03.202614:01:07UTC+00Brazilian Real Steady After Copom

The Brazilian real was little changed around 5.27 per US dollar as the initial volatility following the latest Copom decision began to subside. The currency had briefly weakened to 5.29 after the Central Bank of Brazil cut the Selic rate by 25 basis points to 14.75%, but subsequently found support as investors digested the committee’s signal of a cautious and gradual easing cycle.

The real’s resilience is being challenged by a 7% jump in Brent crude prices toward $115 a barrel after Iranian strikes on Gulf energy infrastructure, raising concerns over higher imported energy costs. Even so, domestic sentiment was underpinned by a 0.15% increase in the preliminary March IGP-M reading, pointing to firmer wholesale prices.

Traders remain focused on the widening policy divergence between Brazil’s newly signaled rate-cut trajectory and the US Federal Reserve’s still-restrictive stance. For now, however, the real is drawing support from a pullback in the dollar’s global strength, as markets weigh escalating geopolitical risks against Copom’s relatively hawkish tone on inflation.