Key Points
The dollar climbed to about 5.20 reais on Wednesday, its strongest since March, as a worldwide rush into safe assets lifted the US currency and Treasuries.
Brazil’s Ibovespa slipped 0.44% to 170,507, a modest pause that still held well above the floor it broke higher from this week.
Two big inflation tests land this morning: Brazil’s mid-month price index and, more importantly, the US gauge the Federal Reserve watches most closely.
The squeeze on the real reflects a shrinking gap: the Fed is leaning toward higher rates while Brazil is expected to keep cutting, narrowing Brazil’s yield advantage.
