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The Brazilian real weakened about 3 percent in early trading on Friday, even after the central bank stepped up currency interventions. The move reflected lingering concern over Donald Trump's US presidential election victory earlier that week.
A weaker real raises the cost of dollar-priced feed imports for Brazil and tends to make Brazilian soybean and corn exports more competitive, which can support Brazilian export prices. Persistent intervention may limit how far the currency falls.
reuters.comNov 11, 2016After 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.
The real fell a further ~3% on Nov 11 despite stepped-up central bank intervention, showing continued Trump-related selling pressure.
