In the forex market, the BRL/USD symbol denotes the trading of the Brazilian real against the US dollar, one of the most popular emerging market currency pairs. The BRL is the strongest currency across Latin America and is the official currency of Brazil - one of the fastest growing free-market economies worldwide. It is one of the newest currencies in the world of forex, having been introduced only in 1994 as a replacement to the Cruzeiro real with an objective to stabilize the Brazilian economy.On the other hand, the US dollar is the world’s most popularly traded currency and also enjoys a safe haven status, owing to the perceived strength and stability of the US economy - the world’s largest and more powerful economy.The exchange rate of the BRL/USD experiences maximum volatility when markets trade with a risk-on sentiment, as it drives traders towards the riskier emerging market currency. When the risk appetite of markets is high, BRL/USD trades bullish as more investors move away from the safety of the US dollar and towards riskier currencies like the Brazilian real. On the other hand, when markets trade with a risk-off sentiment, the BRL/USD turns bearish as traders sell-off the BRL and opt for safer currencies instead.