# Brazil currency skids as election woes add to pessimism

> Brazil's real hit a two-year low against the dollar while Latin American peers gained. The currency slide followed a major truckers' strike and rising concern over October elections, with a poll showing right-wing and leftist candidates leading. Investors also reacted to increased state intervention at Petrobras.

- Date: 2018-06-06 · published 2018-06-06T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/5376-brazil-currency-skids-as-election-woes-add-to-pessimism
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real makes Brazilian soybeans, corn and meal cheaper in dollar terms, which can encourage exports and weigh on US and global prices. Political uncertainty also raises the risk of further currency swings.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-06-14 | 5 | -5.8% | -3.9 | Two-year low on truckers' strike aftermath, election uncertainty and Petrobras intervention worries drove domestic risk premium higher, weakening the real. |
| USDBRL | 2018-06-08 | 1 | -4.7% | -6.6 | Election uncertainty, the truckers' strike aftermath and Petrobras intervention worries hit sentiment and set up the real's slide to a two-year low. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-12-19 | [Why Brazil’s currency is plunging](https://feedsoft.ai/events/27149-why-brazil-s-currency-is-plunging.md) | -0.5% | -2.5% |
| USDBRL | 2018-07-16 | [Brazil: Post-strike pre-election blues](https://feedsoft.ai/events/64232-brazil-post-strike-pre-election-blues.md) | -2.2% | -0.3% |
| USDBRL | 2019-03-28 | [No, Brazil's Currency Is Not Going To R$5 If Pension Reform Fails](https://feedsoft.ai/events/60306-no-brazil-s-currency-is-not-going-to-r-5-if-pension-reform-fails.md) | -2.9% | +0.4% |
| USDBRL | 2022-11-22 | [Bolsonaro challenges Brazil election he lost to Lula](https://feedsoft.ai/events/38889-bolsonaro-challenges-brazil-election-he-lost-to-lula.md) | -0.7% | -2.5% |
| USDBRL | 2024-12-16 | [Brazil currency hits record low amid ongoing fiscal woes](https://feedsoft.ai/events/27145-brazil-currency-hits-record-low-amid-ongoing-fiscal-woes.md) | +0.3% | -0.2% |

## Sources

- reuters.com: https://www.reuters.com/article/business/brazil-currency-skids-as-election-woes-add-to-pessimism-idUSL2N1T81Q4/

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