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Chilean and Colombian currencies outpaced Latin American peers on Monday, tracking higher copper and oil prices after U.S. President Trump signed a coronavirus relief package. Brazil's real sank as much as 1.8% to a near one-month low, prompting central bank intervention to stabilize it ahead of expected year-end position unwinding.
Intervention to defend the real and a weaker BRL raise the dollar cost of Brazilian feed ingredients such as soybeans and meal, which can support export-parity prices for Brazilian supply.
reuters.comAmbar WarrickDec 28, 2020After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
