The Brazilian Real depreciated against the US dollar on Tuesday, as investors globally trimmed their exposure to riskier assets amidst growing concerns about the global economic outlook. Heightened volatility in financial markets further fueled the risk aversion, prompting a flight to safety.

The Real’s decline mirrors similar movements in other emerging market currencies, which are often seen as more vulnerable during periods of economic uncertainty. Analysts suggest that the trend may continue in the short term, contingent on the stability of global markets and investor sentiment.

The central bank’s response to the Real’s depreciation remains to be seen, with interventions possible to stabilize the currency. However, the long-term trajectory of the Real will likely be determined by broader economic factors, including Brazil’s trade balance and foreign investment flows.