The Brazilian real strengthened past 5.48 per US dollar, rebounding from an early August low of 5.52 seen October 10th, after a sharp repricing of trade-war risk following US signals that a weekend escalation with China was being dialled back. President Trump’s softer tone and follow-up comments lowered the odds of abrupt tariffs or export controls, which reduced emergency dollar-hedging flows. That external relief came as China’s September buying, notably record iron-ore imports and firmer crude/soy purchases, lifted Brazil’s near-term export receipts, increasing foreign-currency inflows. Domestically, the Selic rate at 15% keeps real yields attractive, sustaining portfolio demand for reais and limiting sustained outflows. Still, the currency remains vulnerable after the rejection of the IOF-replacement measure and ongoing worries about a widening fiscal deficit have kept funding premia elevated and leave the real exposed to renewed risk or budget-related shocks.