In the last day the euro was negotiated at closing 5.87 Brazilian reals on averagewhich represented a change of 0.23% when compared to the 5.86 Brazilians of the previous day, reports Dow Jones.
Taking into account the last seven days, the euro registers a decrease of 0.04% and for a year it has still accumulated a decrease in 8.84%.
Regarding the changes of this day with respect to past dates, it put an end to two days in a row with a flat trend. In the past seven days, volatility presented a clearly lower performance than the volatility shown in the last year’s data, showing itself as a value with less variations than normal at this time.
The Brazilian real will maintain a stable trend with slight depreciation against the dollar in 2026, according to UBS projection. The report forecasts an exchange rate of 5.40 reais per dollar in the first quarter and a rate of 5.50 in the rest of the year. This forecast is based on the combination of internal and external pressures on the Brazilian currency.
At the international level, the United States Federal Reserve will begin a cycle of rate reductionwhich would relieve some of the pressure on emerging currencies. In addition, the global environment shows signs of growth and favorable raw material prices, a positive aspect for Brazil as an exporter.
However, the appeal of “carry trade” —rate differential between Brazil and the United States— could be affected by the start of rate cuts by the Central Bank of Brazil, which would take the SELIC rate to around 12.5% by the end of 2026.
At the internal level, the report highlights the increase in the fiscal deficit to 8.5% of GDP and a public debt close to 80%, factors that increase the perception of risk and limit the foreign capital entry. The current account deficit rises to 3.6% of GDP, putting even more pressure on the balance of payments.
