The Brazilian real strengthened toward 5.46 per US dollar, rebounding toward its strongest level in almost a year seen on August 12th, after the recent legal shock that inflated Brazil’s risk premium was followed by a modest easing in external pressures, as the dollar slipped globally ahead of Jackson Hole. The sharp depreciation had tracked a rapid repricing of risk after a Supreme Court order stating that foreign laws do not apply domestically was read as hardening the Brazil–US standoff tied to Magnitsky-related sanctions and Washington’s recently announced 50% tariff package on Brazilian goods, both of which widened risk premiums. Although it did not directly mention the dispute between the two governments, the measure was interpreted as a gesture of protection for Minister Alexandre de Moraes, who is the target of US sanctions under the Magnitsky Act. This added to existing fiscal and monetary uncertainty, introducing legal uncertainty that further lifted risk aversion.