# Why Brazil’s currency is plunging

> The Brazilian real is the worst-performing major currency this year, down more than 20% and at a record low of almost 6.3 per dollar. The article says the situation has worsened.

- Date: 2024-12-19 · published 2024-12-19T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/27149-why-brazil-s-currency-is-plunging
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A sharply weaker real boosts Brazilian export competitiveness for soybeans, corn and meal, which tends to weigh on world feed prices.

## Read by commodity

- SBM: bearish ▼
- CORN: bearish ▼
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-03-28 | [No, Brazil's Currency Is Not Going To R$5 If Pension Reform Fails](https://feedsoft.ai/events/60306-no-brazil-s-currency-is-not-going-to-r-5-if-pension-reform-fails.md) | -2.9% | +0.4% |
| USDBRL | 2018-06-06 | [Brazil currency skids as election woes add to pessimism](https://feedsoft.ai/events/5376-brazil-currency-skids-as-election-woes-add-to-pessimism.md) | -2.7% | +2.7% |
| USDBRL | 2018-05-22 | [brazil-currency-weakness-halts-the-interest-rate-cuts](https://feedsoft.ai/events/9714-brazil-currency-weakness-halts-the-interest-rate-cuts.md) | +0.5% | +0.6% |
| USDBRL | 2024-12-16 | [Brazil currency hits record low amid ongoing fiscal woes](https://feedsoft.ai/events/27145-brazil-currency-hits-record-low-amid-ongoing-fiscal-woes.md) | +0.3% | -0.2% |
| USDBRL | 2017-05-18 | [Plunge in Brazil’s Real Shows Risk of Chasing Big Returns](https://feedsoft.ai/events/71196-plunge-in-brazil-s-real-shows-risk-of-chasing-big-returns.md) | +5.6% | +5.6% |
| SBM | 2024-12-16 | [Brazil currency hits record low amid ongoing fiscal woes](https://feedsoft.ai/events/27145-brazil-currency-hits-record-low-amid-ongoing-fiscal-woes.md) | +2.8% | +4.4% |
| SBM | 2017-05-18 | [U.S. grains: Soybeans fall as Brazilian currency dives - AgCanada](https://feedsoft.ai/events/7583-u-s-grains-soybeans-fall-as-brazilian-currency-dives-agcanada.md) | -2.8% | -4.7% |
| SBM | 2024-11-11 | [Brazil's currency weakens amid government delays in announcing new fiscal measures \| Reuters](https://feedsoft.ai/events/27614-brazil-s-currency-weakens-amid-government-delays-in-announcing-new-fiscal.md) | -1.9% | -4.2% |

## Sources

- economist.com: https://www.economist.com/finance-and-economics/2024/12/19/why-brazils-currency-is-plunging

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