Brazil's central bank sold $1.27B in the spot market Tuesday, marking its 3rd intervention in a week to support the struggling real (BRL). Despite an initial 0.6% rise, the BRL reversed gains, falling 0.5% against the USD, cementing its status as 2024's worst-performing major currency (-21%). With volatility fueled by fiscal deficit fears, President Lula's recent tax breaks and modest spending cuts failed to assure investors. Analysts argue that central bank interventions alone won't stabilize the BRL without stronger fiscal reforms. The BCB recently raised rates to 12.25% and signaled further hikes, but concerns over rising inflation persist. Market attention now shifts to the government’s next move to restore fiscal credibility. #Forex #BRL #Brazil #USD