Dollar Plunges 8-Year Record, Breaches R$5 as BRL Surges

The US dollar fell to R$5, marking its largest single-day drop in eight years, signaling a sharp appreciation of the Brazilian real. The move suggests a major shift in capital flows or expectations, possibly driven by domestic rate dynamics or global risk appetite. The sustainability of this move is uncertain, but it has immediate implications for Brazilian inflation, trade, and monetary policy.