# Brazil's real gains on rate-hike bets, but loses for the week | Financial Post

> Brazil's real rose 0.6% on Friday after consumer inflation for the month to mid-July hit its highest in 17 years, boosting expectations of a 100 basis point rate hike at the August central bank meeting. Russia's central bank also raised rates by 100 basis points that day, its steepest hike since 2014. Colombia's peso was the weakest Latin American currency for the week.

- Date: 2021-07-23 · published 2021-07-23T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/46261-brazil-s-real-gains-on-rate-hike-bets-but-loses-for-the-week-financial-post
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Higher Brazilian interest rates support the real, which tends to make Brazilian exports such as soybeans, corn and meal relatively more expensive for foreign buyers and can weigh on dollar-priced grain values. The broader trend of EM rate hikes is a macro signal rather than a direct grain supply factor.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-06-29 | [Fed rate hike bets hit Latam assets; Brazil's real jumps \| Financial Post](https://feedsoft.ai/events/41148-fed-rate-hike-bets-hit-latam-assets-brazil-s-real-jumps-financial-post.md) | +3.9% | +0.8% |
| USDBRL | 2021-10-27 | [Brazil's real gains as bets rise for large rate hike - Markets - Business Recorder](https://feedsoft.ai/events/44785-brazil-s-real-gains-as-bets-rise-for-large-rate-hike-markets-business-recorder.md) | +1.7% | +0.2% |
| USDBRL | 2021-05-27 | [Brazilian real leads gains among Latam FX \| Financial Post](https://feedsoft.ai/events/47313-brazilian-real-leads-gains-among-latam-fx-financial-post.md) | -4.3% | -7.3% |
| USDBRL | 2021-12-08 | [Brazil's real rallies over 1% ahead of interest rate decision \| Financial Post](https://feedsoft.ai/events/43829-brazil-s-real-rallies-over-1-ahead-of-interest-rate-decision-financial-post.md) | +0.7% | +1.3% |
| USDBRL | 2023-04-20 | [Latam FX higher against soft dollar, Brazil real snaps 3-day losing streak \| Financial Post](https://feedsoft.ai/events/36623-latam-fx-higher-against-soft-dollar-brazil-real-snaps-3-day-losing-streak.md) | -0.0% | -2.2% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazils-real-gains-on-rate-hike-bets-but-loses-for-the-week

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