The Brazilian real fell past 5 per USD in March, influenced by a softening labor market and dim export forecasts. The unemployment rate reached 7.8% for the quarter ending in February, aligning with expectations but increasing from the previous quarter’s 7.5%. Despite a relatively tight labor market, this softening trend hints at potential extended Selic rate cuts after June, supported by expectations of slowing inflation, influencing a dovish stance from the BCB.