Thursday morning in New York, Brazil's currency surged higher against the US dollar following the reports showed that the Brazilian consumer prices rose at a softer pace through mid-September and jobless rate barely budged in August. The real thus advanced to its highest level in more than a year.

Brazil's statistical office IBGE announced that the national index of consumer price large, IPCA - 15 rose 0.19% month-on-month in September, slower than the 0.23% increase in the previous month. Economists' were looking for an increase of 0.17%.

Year-on-year, consumer prices increased 4.27% in September, slower than the 4.34% growth in August.

At the same time, Brazil's statistical office IBGE announced that the jobless rate stood at 8.1% in August, up from 8% recorded in the previous month. Economists expected the rate to be 8%. A year ago, the jobless rate was 7.6%.

Extending its 3-day winning streak, the Brazilian real rose to 1.781 against the US dollar around 8:45 am ET. This set the highest level for the domestic currency since September 12, 2008.

If the real rises further, resistance is likely to be seen around the 1.754 level. The dollar-real pair ended Wednesday's trading higher at 1.799.

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