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Dollar Rises: Tensions Between the U.S. and Brazil Increase Economic Uncertainties

Written by Sara Aquino
Published on 23/09/2025 at 06:00
Updated on 22/09/2025 at 21:22
Dólar em Alta: Tensões Entre EUA e Brasil Elevam Incertezas na Economia
Fonte: IA
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Dollar Closes Higher After US Sanctions Against Moraes’ Wife and Puts Pressure on the Economy in Brazil Amid Diplomatic Crisis.

Dollar Reacts to Sanctions and Increases Pressure on the Brazilian Economy

On Monday (22), the dollar rose against the real, contrary to the trend observed in the international scenario. The appreciation occurred after the US announced sanctions against Viviane Barci de Moraes, wife of STF minister Alexandre de Moraes, generating immediate impact on the Brazilian exchange rate and increasing uncertainty about the national economy.

The episode unfolded just before President Luiz Inácio Lula da Silva’s speech at the UN General Assembly in New York, intensifying the perception of diplomatic tension between Brazil and the United States.

US Sanctions Put Bilateral Relations Under Pressure

The US government reported that Viviane Barci de Moraes, wife of Minister Alexandre de Moraes, had her assets in US territory blocked under the Magnitsky Act.

In addition, US authorities announced the revocation of the visas of the Attorney General of the Union, Jorge Messias, and other Brazilian authorities connected to the Judiciary.

These measures were interpreted as a direct response to the conviction of former President Jair Bolsonaro by the STF, an episode that had already been pointed out by the US as a reason for possible retaliations.

Immediate Reaction in the Financial Market and Impact on Exchange Rate

At the moment of greatest stress, the dollar surpassed the mark of R$ 5.35, reaching a high of R$ 5.3660. Subsequently, the weakening of the US currency abroad and the perception that the sanctions were limited to specific individuals softened the exchange rate.

At closing, the dollar registered an appreciation of 0.32%, ending the session at R$ 5.3381.

Moreover, the movement marked the fourth consecutive trading session of gains, consolidating the recovery of the currency after falling below R$ 5.30 on September 16.

Brazilian Economy on Alert Amid Rising Tensions

The Itamaraty stated that it received the sanctions “with deep indignation.” The Brazilian Foreign Ministry also highlighted that the use of the Magnitsky Act constituted an attempt at undue interference in the internal affairs of the country.

In an official statement, the government reinforced that Brazil will not accept external measures that interfere in the decisions of the Judiciary.

Thus, the position was interpreted as an effort to contain the political and economic effects of the actions imposed by the US.

US Justifies Sanctions with National Security Rhetoric

US Secretary of State Marco Rubio posted on his official account on X (formerly Twitter) that the sanctions against Viviane Barci represented a direct warning. He stated that the measure aimed to signal that individuals who protect or enable actors deemed harmful to US interests would be held accountable.

In this way, Washington reinforced its intention to adopt a tougher stance towards Brazilian authorities seen as aligned with positions contrary to its foreign policy.

Global Context and Implications for Brazil

Experts note that the dollar’s appreciation in Brazil occurred despite the trend of weakening of the US currency at the international level. The Federal Reserve (Fed), the US central bank, had recently decided to cut interest rates, which pressured the dollar down in other markets.

However, in Brazil, the combination of diplomatic sanctions and political instability provoked the opposite movement. This scenario reignited concerns about the prolonged effects that these tensions may generate on the national economy.

Outlook for the Coming Days

Analysts believe that the escalation of tensions between the US and Brazil may keep the dollar at high levels, especially if new political developments arise. Furthermore, they point to President Lula’s speech at the UN as a decisive factor for guiding the next movements in the market.

Meanwhile, investors remain alert to the vulnerability of the Brazilian economy to external shocks and diplomatic crises. Thus, they emphasize that these situations tend to increase volatility in the exchange rate.

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Sara Aquino

Farmacêutica e Redatora. Escrevo sobre Empregos, Geopolítica, Economia, Ciência, Tecnologia e Energia.

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