The Brazilian real edged lower against the U.S. dollar on Tuesday as Middle East tensions and rising Brent crude prices underpinned safe-haven demand for the greenback.
At 09:53 a.m. local time, the spot dollar was quoted at R$5.1863, up 0.09% on the selling side, after closing Monday at R$5.1814, a decline of 0.28%. Dollar futures for October delivery on B3 rose 0.02% to R$5.2205.
The U.S. Dollar Index, which tracks the greenback against a basket of six major currencies, increased 0.20% to 99.612. Brent crude oil futures climbed to around $92 per barrel, extending gains driven by escalating geopolitical risks in the Persian Gulf.
Tensions between the United States and Iran remained elevated after new attacks in the region and threats from U.S. President Donald Trump against Tehran. The conflict contributed to a sell-off in global government bonds, pushing U.S. Treasury yields higher and reinforcing the dollar’s appeal as a safe-haven asset.
In economic data, Brazil’s gross domestic product grew 0.5% in the second quarter from the previous three months, following an expansion of 1.1% in the first quarter. On an annual basis, GDP rose 2.0% in the second quarter, outpacing Reuters-surveyed economists’ median forecast of 1.8%. The data reflects a moderate pickup in economic activity amid a challenging external environment.
