Dollar Closes Below R$ 5 for the First Time in Over Two Years

Key Takeaways

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The dollar has weakened significantly against the Brazilian Real, closing below R$5 for the first time in over two years due to U.S.-Iran tensions and inflation concerns in Brazil.
The truce between the U.S. and Iran brokered by Pakistani Prime Minister Shehbaz Sharif led to a sharp decline in commodity prices, with Brent crude dropping 11.06% and WTI falling 14.25%.
The Brazilian Ibovespa stock exchange index reached a new record following the truce, advancing after briefly breaking through 197,000 points.
Market expectations for inflation in Brazil have risen, with the IPCA inflation projection for 2026 increasing to 4.71%. The Central Bank predicts US Dollar to Brazilian Real exchange rates to be around R$5.0839 this week, R$5.0921 next week, and R$5.0722 one month from now.

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On Monday, April 13th, the dollar closed below R$5 for the first time in over two years, dropping 0.29 to R$4.9969. Earlier, on April 8th, the dollar had hit a two-year low of R$5.1028 following the declaration of a truce between the U.S. and Iran, which was brokered by Pakistani Prime Minister Shehbaz Sharif. The truce mandated reopening the Strait of Hormuz, triggering a sharp decline in commodity prices. Brent crude plummeted 11.06% to $97.18, and WTI (West Texas Intermediate) tumbled 14.25% to $96.86. Pakistan invited both the U.S. and Iran to talks in Islamabad on Friday, April 10th, to discuss a long-term peace agreement. As trading continued, Brazil’s Ibovespa stock exchange index reached a new record, advancing 0.34% to 198,001 points after briefly breaking through 197,000 for the first time on Friday morning, while the dollar fell to R$5.02. These outcomes reflected developments related to U.S.-Iran relations. Markets initially declined following the failure of peace agreement negotiations over the weekend. However, investor sentiment shifted after President Trump announced receiving a call from Iranian officials expressing interest in finalizing an accord.

Dollar Remains Weak Against Real Amid Iran-U.S. Tensions and Inflation Concerns in Brazil

Tensions had previously escalated after the announcement of an American blockade of ships circulating through or to Iranian ports, which went into effect that morning. Two oil tankers associated with Iran left the Persian Gulf on Monday, while other vessels began avoiding the Strait of Hormuz. By 4:00 PM, Brent crude had risen 3.27% to $98.31 per barrel, while WTI advanced 1.35% to $97.87. In Brazil, the Focus Bulletin from the Central Bank indicated rising market expectations for inflation. The IPCA inflation projection for 2026 increased to 4.71%, up from 4.36%, marking the fifth consecutive increase and exceeding the target ceiling of 4.5%. Investors also followed statements by Central Bank President Gabriel Galipolo at World Bank and IMF events. According to G1, predictions for the US Dollar to Brazilian Real exchange rates over the coming weeks are: This week: around R$5.0839 Next week: R$5.0921 One month from now: R$5.0722

In Case You Missed It

In a wave of exciting news, Ahmed Hassan shares several notable developments in the gaming world. First off, retro gaming enthusiasts are in for a treat as SNEG and Games Workshop join forces to revive over 20 cult Warhammer video games through ‘Warhammer Classics’. Published on April 13th, this restoration project aims to update these iconic titles for modern systems while retaining their original charm, with limited-time discounts available on Steam. Check out Hassan’s detailed report here SNEG and Games Workshop Join Forces to Restore 20 Cult Warhammer Video Games to explore the extensive list of restored games.

Meanwhile, in another thrilling development, the Global Game Jam and Lagos Games Week have teamed up to launch the Pan-African Jam 2026. This two-week virtual game jam (April 24 – May 11) invites African developers to collaborate under the theme “Play Without Borders”, with cash prizes totaling $2,500 and winners showcased at Lagos Games Week 2026. Register now on the Global Game Jam website to be part of this groundbreaking event! Global Game Jam and Lagos Games Week Announce Partnership for Pan-African Game Jam Ahead of Lagos Games Week 2026

Lastly, S-GAME, the creative force behind Phantom Blade Zero, takes a stand against AI-generated visual technology in an impressive display of artistic integrity. In Jonathan Dubinski’s recent article published on April 13th, we learn that the studio refuses to embrace NVIDIA’s DLSS 5 due to potential artistic compromises. As we await the game’s release on September 9th, take a moment to explore S-GAME’s commitment to human creativity by reading more about their stance here > Phantom Blade Zero Producer Refuses AI, Including DLSS 5, Altering Artists’ Intentions.