# (USD BRL) Brazil’s Real Drops to All-Time Low as Spending Cuts Fall Flat - Bloomberg

> The Brazilian real dropped to a record low and stocks slumped the most since early 2023 after a proposal to cut about $12 billion in public spending disappointed investors. Concern about the budget deficit drove the sell-off.

- Date: 2024-11-28 · published 2024-11-28T12:00:00.000Z
- Category: policy · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/12461-usd-brl-brazil-s-real-drops-to-all-time-low-as-spending-cuts-fall-flat-bloomberg
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real driven by budget-deficit worries makes imported feed inputs more expensive for Brazilian buyers and supports a higher dollar price for Brazilian-origin commodities.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2024-12-02 | 5 | +4.7% | 2.9 | Disappointing spending cuts on Nov 28 raised fiscal deficit concerns and drove the real to a record low, starting the sell-off within the 5-day window (sentiment/capital outflow). |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2025-05-22 | [(BRL/USD) Real Sells Off as Brazil Taxes Remittances to Boost Budget - Bloomberg](https://feedsoft.ai/events/24891-brl-usd-real-sells-off-as-brazil-taxes-remittances-to-boost-budget-bloomberg.md) | -0.2% | -2.7% |
| USDBRL | 2017-05-19 | [For These Die-Hard Investors, Now Is the Time to Buy Brazil - Bloomberg](https://feedsoft.ai/events/4357-for-these-die-hard-investors-now-is-the-time-to-buy-brazil-bloomberg.md) | -2.8% | -2.7% |
| USDBRL | 2021-03-02 | [Brazilian stocks, currency fall as tax hikes spook investors - Markets - Business Recorder](https://feedsoft.ai/events/12206-brazilian-stocks-currency-fall-as-tax-hikes-spook-investors-markets-business.md) | +2.9% | +3.7% |
| USDBRL | 2024-12-02 | [Lula Ignores Aides and Sparks Market Rout That Threatens Economy - Bloomberg](https://feedsoft.ai/events/12458-lula-ignores-aides-and-sparks-market-rout-that-threatens-economy-bloomberg.md) | +1.3% | +3.4% |
| USDBRL | 2023-06-29 | [Brazil government sets new 2026 inflation target, tweaks fulfillment time frame By Reuters](https://feedsoft.ai/events/35695-brazil-government-sets-new-2026-inflation-target-tweaks-fulfillment-time-frame.md) | +1.7% | -2.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2024-11-28/brazil-s-real-drops-to-all-time-low-as-spending-cuts-fall-flat

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.