# Brazil's real jumps after central bank hints at end of easing cycle | Financial Post

> The Brazilian real jumped more than 2.5% to a six-month high of 5.0380 per dollar after the central bank kept its Selic rate at a record low 2.00%. For the first time, Copom outlined a scenario in which its forward guidance could be withdrawn. Retail sales also hit a record high in October.

- Date: 2020-12-10 · published 2020-12-10T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/49851-brazil-s-real-jumps-after-central-bank-hints-at-end-of-easing-cycle-financial
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A hint that rate cuts are ending supports the real and lowers USD/BRL, which matters for Brazilian currency-linked import costs for feed ingredients. The move also reflects improving domestic demand.

## Read by commodity

- SBM: neutral
- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 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) | +3.0% | +4.7% |
| SBM | 2022-12-07 | [Brazilian real up on fiscal relief; Peru's sol falls amid political turmoil \| Financial Post](https://feedsoft.ai/events/38510-brazilian-real-up-on-fiscal-relief-peru-s-sol-falls-amid-political-turmoil.md) | +0.8% | +8.3% |
| SBM | 2025-01-30 | [Brazil central bank hikes rates by 100 bps, confirms same in March](https://feedsoft.ai/events/26712-brazil-central-bank-hikes-rates-by-100-bps-confirms-same-in-march.md) | -0.5% | -4.8% |
| SBM | 2019-08-27 | [Brazil central bank to continue FX intervention on Wednesday as real nears record low - The Business Times](https://feedsoft.ai/events/57788-brazil-central-bank-to-continue-fx-intervention-on-wednesday-as-real-nears.md) | -1.7% | +0.8% |
| SBM | 2020-08-25 | [Argentina debt deal should limit need for more controls, reduce peso gap- cenbank chief \| Financial Post](https://feedsoft.ai/events/51899-argentina-debt-deal-should-limit-need-for-more-controls-reduce-peso-gap-cenbank.md) | +5.4% | +16.7% |
| 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 | 2017-04-17 | [EMERGING MARKETS-Brazil real jumps on central bank intervention](https://feedsoft.ai/events/71706-emerging-markets-brazil-real-jumps-on-central-bank-intervention.md) | +0.1% | -0.8% |
| USDBRL | 2021-10-19 | [Brazil central bank intervenes in FX market rattled by new spending \| Financial Post](https://feedsoft.ai/events/44783-brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending-financial.md) | +1.4% | -0.4% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/brazils-real-jumps-after-central-bank-hints-at-end-of-easing-cycle
- reuters.com: https://www.reuters.com/article/business/brazils-real-jumps-after-central-bank-hints-at-end-of-easing-cycle-idUSL1N2IQ23Q/

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