The Federal Reserve maintained its benchmark interest rate in the 3.50%-3.75% range on Wednesday, but the decision was marked by an unusual three-way hawkish dissent.
The split vote underscores growing internal debate within the central bank regarding the appropriate pace of monetary policy easing, sending ripples through emerging markets.
The dollar’s weakness against the Brazilian real, which had previously closed at R$5.
Latin American equities reacted sharply to the news.
Brazil’s benchmark Ibovespa index fell 1.5% as investors digested the implications of the divided stance.
The US dollar eased against a basket of currencies, reflecting a complex market reaction to the Fed’s hold combined with the unexpected level of dissent.
The dollar’s weakness against the Brazilian real, which had previously closed at R$5.10, continued as sentiment shifted following the decision.