# Liquidity squeeze in the U.S. could weigh on Brazilian real

> Investors are preparing for possible renewed tightening in US dollar liquidity, with SOFR having spiked to 4.22% after the Fed's October decision. Wells Fargo's Michael Schumacher warned that high-yield currencies such as the real could come under pressure by year-end.

- Date: 2025-11-18 · published 2025-11-18T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/22155-liquidity-squeeze-in-the-u-s-could-weigh-on-brazilian-real
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A tighter dollar funding market raises carry-trade costs and could weaken emerging market currencies, which tends to make Brazilian commodity exports cheaper in dollar terms and supportive of export volumes.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2017-06-26 | [Slumping Commodity Prices Pressure the Brazilian Real in 2Q17](https://feedsoft.ai/events/70712-slumping-commodity-prices-pressure-the-brazilian-real-in-2q17.md) | -0.7% | -5.4% |
| USDBRL | 2020-03-12 | [Is coronavirus the only one to blame for Brazilian Real’s rout?](https://feedsoft.ai/events/6395-is-coronavirus-the-only-one-to-blame-for-brazilian-real-s-rout.md) | +9.2% | +10.4% |
| USDBRL | 2025-02-19 | [Brazilian Real Weighed by Trade Fears](https://feedsoft.ai/events/26258-brazilian-real-weighed-by-trade-fears.md) | +1.4% | -0.3% |
| USDBRL | 2025-11-03 | [Foreign investors go bearish on Brazilian real](https://feedsoft.ai/events/22162-foreign-investors-go-bearish-on-brazilian-real.md) | -0.8% | -0.8% |
| USDBRL | 2025-08-27 | [Inflation surprise, Trump’s attack on Fed weigh on Brazilian assets](https://feedsoft.ai/events/23528-inflation-surprise-trump-s-attack-on-fed-weigh-on-brazilian-assets.md) | +0.4% | -2.1% |
| DXY | 2022-04-22 | [Pumped-up dollar compounding global liquidity squeeze](https://feedsoft.ai/events/41760-pumped-up-dollar-compounding-global-liquidity-squeeze.md) | +2.5% | +2.0% |
| DXY | 2024-10-23 | [Market braces for pressure on Brazilian real as Trump’s chances rise](https://feedsoft.ai/events/28085-market-braces-for-pressure-on-brazilian-real-as-trump-s-chances-rise.md) | +0.4% | +2.0% |
| DXY | 2024-04-29 | [A Strong U.S. Dollar Weighs on the World](https://feedsoft.ai/events/30905-a-strong-u-s-dollar-weighs-on-the-world.md) | -0.7% | -1.1% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/markets/news/2025/11/18/liquidity-squeeze-in-the-us-could-weigh-on-brazilian-real.ghtml

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