# Calmer Treasury yields support Latam FX; Real drops on inflation worries

> Most Latin American currencies rose on February 9 as a rally in U.S. Treasury yields paused. Brazil's real fell 0.4%, the most in the region, after January consumer inflation posted its steepest rise in six years. Analysts said weak fiscal data and a sluggish economy limited the currency's appeal despite high interest rates.

- Date: 2022-02-09 · published 2022-02-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/42915-calmer-treasury-yields-support-latam-fx-real-drops-on-inflation-worries
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real raises the local-currency cost of imported inputs for Brazilian feed producers while making Brazilian exports cheaper in dollar terms. Persistent inflation also keeps the central bank tightening, which weighs on domestic demand for animal protein.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-02-19 | [Latam FX weak, Brazil's real drops ahead of pension reform plans - Pension Policy International](https://feedsoft.ai/events/60781-latam-fx-weak-brazil-s-real-drops-ahead-of-pension-reform-plans-pension-policy.md) | +1.4% | +1.5% |
| USDBRL | 2021-02-03 | [Latam currencies fall on pandemic worries as infections rise](https://feedsoft.ai/events/48850-latam-currencies-fall-on-pandemic-worries-as-infections-rise.md) | +1.0% | +7.2% |
| USDBRL | 2024-07-02 | [Latam assets drop on fiscal policy, interest rates caution](https://feedsoft.ai/events/9454-latam-assets-drop-on-fiscal-policy-interest-rates-caution.md) | -2.8% | +1.2% |
| USDBRL | 2019-06-27 | [Brazilian real falls on economy worries, dollar lifts other Latam forex - Pension Policy International](https://feedsoft.ai/events/58796-brazilian-real-falls-on-economy-worries-dollar-lifts-other-latam-forex-pension.md) | +0.2% | -1.2% |
| USDBRL | 2020-10-29 | [Latam FX fails to shake off virus, election worries \| Financial Post](https://feedsoft.ai/events/50920-latam-fx-fails-to-shake-off-virus-election-worries-financial-post.md) | -1.5% | -6.3% |

## Sources

- reuters.com: https://www.reuters.com/article/marketsNews/idUSL4N2UK3E7/?il=0

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