Real Closes Below R$5 as Hopes for U.S.–Iran Talks Cool a Volatile Week

Overview

• Brazil’s currency whipsawed Thursday after Treasury internalization linked to a €5 billion bond sale briefly lifted the real in the morning before risk aversion pushed the dollar back above R$5 and the Ibovespa down 0.78%.
• On Friday, Brent hovered near $105–106 as the Strait of Hormuz stayed restricted and talks between the United States and Iran showed no clear progress, keeping market nerves high.
• Brazil’s central bank announced a US$1 billion spot dollar sale paired with reverse FX swaps, and official data showed net negative foreign‑exchange flows of US$4.121 billion in April through the 20th.
• Reports pointed to possible talks in Pakistan this weekend, with the White House saying it would send negotiators and Reuters reporting Iran’s Abbas Araghchi would travel, though Iranian officials had not confirmed a new round.
• The dollar ended Friday at about R$4.998 in a choppy session, while the Ibovespa fell 2.5% for the week, as high oil and local fiscal questions kept investors wary of how prolonged Hormuz disruptions could feed fuel costs and inflation.