The Brazilian real strengthened against the U.S. dollar on Friday morning, with the local currency tracking softer global dollar sentiment and local investors awaiting fresh election polling data.
The spot dollar was down 0.34% at R$5.1763 for selling at 9:14 a.m. B3 São Paulo time, according to market sources. The September futures contract on the B3 exchange, the most liquid dollar-denominated instrument, fell 0.38% to R$5.1860. On Thursday, the dollar had risen 0.31% to close at R$5.1937, extending a two-day advance.
Traders cited a combination of external and domestic factors shaping the session. The U.S. dollar softened against major peers overnight, easing pressure on emerging-market currencies including the real. Locally, market participants focused on political developments ahead of the publication of a new Datafolha poll, which is expected to influence near-term currency direction as Brazil’s electoral cycle progresses.
The Central Bank of Brazil said late Thursday it would not hold foreign exchange swap rollover auctions on Friday, a move that removes a key source of dollar supply from the market. The bank did not provide additional details regarding the decision or its duration. The absence of rollover auctions follows a similar pause on Thursday, when the monetary authority also skipped the regular FX swap operation.
The currency’s trajectory remained sensitive to both global risk sentiment and domestic political signals, with investors parsing every data point for clues on policy expectations and market stability ahead of the election.
