Foreign exchange closing: Dollar retreats for the 4th consecutive session and closes below R$ 5.40

By Antonio Perez São Paulo, 10/20/2025 - The dollar opened the week in a firm decline in the local market and closed again below the R$ 5.40 level for the first time in over 10 days. Investors showed an appetite for risk assets amid positive expectations surrounding trade negotiations between China and the United States, which boosted most emerging market currencies and commodity-exporting countries. Operators report a possible inflow of foreign capital to the domestic stock exchange, on a day of Ibovespa gains, and to local fixed income. The assessment is that, without episodes of stress in the external market, the real tends to be favored by the increased attractiveness of the carry trade, with a likely widening of the internal and external interest rate differential after the Federal Reserve's monetary policy decision at the end of the month. With a low of R$ 5.3666, the spot dollar closed down 0.64%, at R$ 5.3708 - the lowest closing value since November 8 (R$ 5.3442). It was ...