Brazilian DI futures, the benchmark for the country's interest rate expectations, ended the trading session with slight gains on Tuesday, recovering from intraday losses triggered by remarks from Federal Reserve Chair Kevin Warsh.
The contracts had posted firm gains earlier in the day before reversing course in the afternoon.
The pullback coincided with comments from Warsh, which introduced fresh caution into the market.
Despite the pressure, buying interest returned late in the session, allowing the rates to close positive.
The volatility in Brazilian rates underscores the continued sensitivity of emerging market assets to US monetary policy signals.
With the Federal Reserve's interest-rate decision scheduled for later this week, market participants are closely monitoring every signal from Fed officials for clues on the policy path ahead.