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Brazil's real weakened sharply on Tuesday, June 14, 2022, closing at R$5.133 per dollar. The Central Bank's Monetary Policy Committee (Copom) was set to announce a new Selic target that Wednesday.
Policymakers use the prior week's average exchange rate (R$4.8909) in their inflation projections, which limits the effect of the spike.
Because Copom's inflation forecast uses the prior week's average rate, the one-day currency move is unlikely to change the policy path. A weaker real raises the local-currency cost of imported inputs, which keeps feed-ingredient import costs elevated for Brazilian buyers.
valorinternational.globo.comAlex RibeiroJun 14, 2022After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
