[Brazil] - Brazilian Real Extends Rally as Central Bank Tightening Offsets Growth Concerns

INSUBCONTINENT EXCLUSIVE:
historic low of R$6.75.Central bank rate hikes and export revenues countered headwinds from sluggish GDP projections and global dollar
strength
spread over US rates.This policy stance helped attract R$32.2 billion in foreign equity inflows during April, reversing nine months of
capital flight
A R$8.15 billion trade surplus for April, driven by corn and vehicle exports, provided fundamental support despite missing forecasts by
2%.Technical charts show the USD/BRL breaking below its 50-day moving average of R$5.68, with immediate support at R$5.64
The Relative Strength Index held at 42, suggesting room for further real appreciation without overextension.Bollinger Band contraction
overnight.Brazilian Real Extends Rally as Central Bank Tightening Offsets Growth Concerns
(Photo Internet reproduction)Domestic challenges persist beneath the surface
Divided Amid Trade TensionsMarket analysts diverge on outlooks
forecasts.Commodity traders monitor US-China tariff talks this week, which could boost Brazilian soy and iron ore shipments if tensions ease
Exporters report rare pricing stability after two years of volatility, with agricultural firms locking in rates near R$5.70.Importers hedge
against reversal risks, purchasing dollar call options at twice May 1 levels
monetary policy to stimulate domestic activity.With global yield hunters circling and local businesses straining under high borrowing costs,