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Brazil's real (BRL) fell about 0.9% and hit fresh lows after a sharp decline since the coronavirus outbreak, prompting sustained Brazilian central bank intervention. President Jair Bolsonaro faces public backlash over his pandemic handling.
Analysts warn emerging-market currencies may face more volatility as economic shocks intensify.
A weaker real makes Brazilian soybeans, corn and meal cheaper in dollar terms, which can support Brazilian export competitiveness and pressure global feed prices. Continued real weakness and EM volatility also raise hedging costs for buyers sourcing from Brazil.
etfdb.comBen HernandezApr 29, 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.
After 117 past bearish macro events, Soybean Meal moved a median -0.6% over 5 sessions (41% higher; middle half -2.5% to +1.7%), and +0.5% 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.
