**BREAKING: Brazilian Real Under Pressure as Geopolitical Tensions Ease**
Rabobank strategists Mauricio Une and Renan Alves are forecasting continued weakness in the Brazilian Real through year-end despite a temporary pause in US-Iran hostilities. While tensions between Washington and Tehran have eased slightly, the strategists warn that uncertainty persists across global energy markets and broader financial conditions.
The assessment suggests the BRL will face headwinds even as immediate geopolitical risks subside. The currency’s vulnerability appears linked to ongoing volatility in energy markets and shifting risk sentiment that typically affects emerging market currencies. Traders holding BRL positions should prepare for downward pressure on the currency as year-end approaches, regardless of the current diplomatic lull.
The forecast comes as markets attempt to price in reduced conflict risk while remaining cautious about the durability of any de-escalation between the US and Iran. Energy market volatility continues to create ripple effects across emerging market assets.
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FXnCO Insight
** Consider hedging long BRL exposure or reducing positions ahead of year-end as Rabobank’s outlook signals sustained downside risk even amid temporary geopolitical calm.
Source: FXStreet