# Brazil's real down 2% as central bank strikes cautious note; Stocks reverse course | Reuters

> Brazil's real slipped 2.5% on May 5 as a surging dollar and signals that the central bank's tightening cycle may be ending weighed on it. The pound fell 2% after the Bank of England flagged recession risks, and South Africa's rand plunged 3.6%. Brazilian equities slumped 2.84%.

- Date: 2022-05-05 · published 2022-05-05T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/41605-brazil-s-real-down-2-as-central-bank-strikes-cautious-note-stocks-reverse
- 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 weaker real makes Brazilian soybean, corn and meal exports cheaper in dollar terms, which can support Brazilian export competitiveness while adding volatility to global oilseed and feed pricing.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-06-27 | [Brazil central bank minutes raise possibility of August rate cut \| Reuters](https://feedsoft.ai/events/35693-brazil-central-bank-minutes-raise-possibility-of-august-rate-cut-reuters.md) | +0.4% | -0.5% |
| USDBRL | 2026-03-18 | [Brazil central bank kicks off easing with cautious 25-bp cut after oil shock \| MarketScreener](https://feedsoft.ai/events/20382-brazil-central-bank-kicks-off-easing-with-cautious-25-bp-cut-after-oil-shock.md) | +1.2% | -4.0% |
| USDBRL | 2024-08-30 | [Brazil Real Swings on Fiscal Woes, Central Bank Interventions](https://feedsoft.ai/events/29017-brazil-real-swings-on-fiscal-woes-central-bank-interventions.md) | -0.8% | -3.6% |
| USDBRL | 2021-01-21 | [Brazilian real drops as fiscal worries overshadow central bank optimism \| Financial Post](https://feedsoft.ai/events/49385-brazilian-real-drops-as-fiscal-worries-overshadow-central-bank-optimism.md) | +1.5% | +2.0% |
| USDBRL | 2020-03-09 | [Brazil stocks post biggest fall since 1998, central bank intervenes twice in FX](https://feedsoft.ai/events/6407-brazil-stocks-post-biggest-fall-since-1998-central-bank-intervenes-twice-in-fx.md) | +2.7% | +14.6% |
| DXY | 2024-09-20 | [Dollar strengthens versus yen as BOJ strikes cautious stance on rate hikes \| Reuters](https://feedsoft.ai/events/28541-dollar-strengthens-versus-yen-as-boj-strikes-cautious-stance-on-rate-hikes.md) | -0.2% | +2.2% |
| DXY | 2021-11-25 | [Asian stocks fall on dollar strength, Bank of Korea hikes rates \| Reuters](https://feedsoft.ai/events/44286-asian-stocks-fall-on-dollar-strength-bank-of-korea-hikes-rates-reuters.md) | -0.2% | -0.6% |
| DXY | 2022-12-16 | [U.S. dollar gains as risk tolerance drops with hawkish central banks \| Reuters](https://feedsoft.ai/events/38416-u-s-dollar-gains-as-risk-tolerance-drops-with-hawkish-central-banks-reuters.md) | -0.3% | -2.7% |

## Sources

- reuters.com: https://www.reuters.com/article/markets/commodities/brazils-real-down-2-as-central-bank-strikes-cautious-note-stocks-reverse-cour-idUSL2N2WX23D/

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