The Brazilian Real strengthened against the U.S. dollar in the early European session on Thursday, after Brazil's central bank slashed its interest rate further, while hinting that the pace of easing would moderate at its next meeting.

The monetary policy committee, known as Copom, unanimously decided to slash its Selic rate by one percentage point to 10.25 percent from 11.25 percent. The rate was lowered by 100 basis points at its April meeting.

The bank had started easing in October 2016 after inflation showed signs of easing.

The Brazilian Real advanced to a 2-week high of 3.2245 against the greenback, up by 1 percent from Wednesday's closing value of 3.2570. The next possible resistance for the Real is seen around the 3.19 region.

US Dollar vs BRL (FX:USDBRL)
Forex Chart
From Dec 2021 to Jan 2022 Click Here for more US Dollar vs BRL Charts.
US Dollar vs BRL (FX:USDBRL)
Forex Chart
From Jan 2021 to Jan 2022 Click Here for more US Dollar vs BRL Charts.