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Brazil's real kept falling despite the central bank selling an extra $2 billion of foreign-exchange swaps, its second intervention above the usual daily offer that week. The currency fell as much as 2.4% on a third day of declines and traded at its weakest level since 2016.
Brazilian stocks also fell sharply.
Persistent real weakness lowers the dollar cost of Brazilian soy and corn exports, supporting Brazilian selling and pressuring global feed prices. Failed intervention signals the currency may stay under pressure.
bloomberg.comJulia LeiteJun 7, 2018After 301 past bullish macro events, USDBRL 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.
Real fell as much as 2.4% to its weakest since 2016 despite extra central bank swap sales, showing strong selling pressure (currency/sentiment) within the window.
Continued real free fall on June 7 despite extra central bank swap offers shows intensifying selling pressure and sentiment-driven depreciation feeding into the multi-day move.
