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20.04.202614:29:45UTC+00Brazilian Real hits mid-April lows

The Brazilian real is trading near 4.98 per dollar, returning to levels last seen in mid-April. The upward move in the USD/BRL pair is being driven by a broad-based appreciation of the US dollar (with the DXY at 98.16) in the wake of Israel’s attack on Iran, which has triggered a strong wave of risk aversion. At the same time, crude oil prices have jumped 4.6% to $87.75 amid concerns over potential supply disruptions in the Strait of Hormuz. Although Brazil is a net oil exporter, the prevailing “flight to quality” is dominating market behavior: dollar strength and geopolitical uncertainty are offsetting the typical benefits of higher commodity prices. As a result, the Brazilian real remains volatile while it tests key technical resistance levels.

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