The Brazilian real (BRL) closed stronger against the United States dollar for the 11th consecutive trading session on Monday.
The real closed at 5.8519 per United States dollar, its best performance since November. This is its longest streak of gains since 2005.
As of the latest update, the exchange rate is approximately 1 BRL = A$0.28.
The real was the world’s worst-performing major currency last year, reaching a record low of around 6.3 reais to the U.S. dollar in December. “Our currency floats and at this moment, when [bills to cut government spending] are pending, there’s an atmosphere of uncertainty that makes the currency float. But I believe it will find its ground,” said Economy Minister Fernando Haddad at the time.
Brazil’s currency depreciated almost 23% in 2024. The country's real gross domestic product grew between the first and second quarter, but the currency struggled in the second half of the year, largely due to market uncertainty over government fiscal policies.
The real first began to sink last year amid debate on a government spending cut package in November. Brazil’s gross public sector debt also increased during 2024, growing by 2.2% to reach 76.1% of GDP.
The Brazilian central bank sold more than US$3 billion in a series of dollar auctions in December, buoying the currency by 0.6% that week.
The BRL has strengthened by around 6% in 2025.
The country’s central bank raised benchmark interest rates to 13.25% last week, following its hike to 12.25% in December.
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