What displeased the market in the Copom minutes on interest rates, and what does it have to do with the dollar’s rise?

Brazil’s central bank kept the Selic rate at 13.75% after five consecutive cuts and said worsening inflation expectations warrant keeping rates high for longer, without specifying when cuts might resume. The minutes and US inflation data contributed to a 1.48% rise in the dollar to R$5.58, its highest level since July 2025.