# Brazil takes a hit as Trump elected US president - BNamericas

> Brazil's currency and markets came under pressure after Donald Trump was confirmed as US president. The US dollar opened at 3.248 reais, up 2.59 percent, and several analysts forecast further real weakness toward 3.40 to 3.60 per dollar. Analysts expected a negative impact on the Bovespa stock index.

- Date: 2016-11-09 · published 2016-11-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/5469-brazil-takes-a-hit-as-trump-elected-us-president-bnamericas
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Analysts expect a weaker real to push up Brazil's import costs and inflation, which may slow monetary easing. For feed buyers, a stronger dollar raises the cost of dollar-priced imported ingredients while supporting Brazilian export competitiveness.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2016-11-10 | 1 | +4.6% | 6.4 | Trump's election win on 2016-11-09 triggered a sentiment-driven selloff in emerging-market assets, with USD/BRL opening up about 2.6%, which accounts for much of the move ending 2016-11-10. |
| USDBRL | 2016-11-16 | 5 | +7.5% | 3.5 | Trump's election win on Nov 9 triggered an immediate sell-off in the real (USD opened +2.59% at 3.248), starting the 5-day move via risk-off and EM capital flight sentiment. |
| DXY | 2016-11-09 | 1 | +1.2% | 3.9 | The real fell 2.6% against the dollar on 2016-11-09, showing EM currency weakness that contributed to the broad dollar index gain, though it is one currency's view. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2016-11-11 | [Uncertainty over Trump leads to reevaluation of rate cuts in Brazil - BNamericas](https://feedsoft.ai/events/74027-uncertainty-over-trump-leads-to-reevaluation-of-rate-cuts-in-brazil-bnamericas.md) | +0.7% | -0.4% |
| USDBRL | 2017-06-28 | [Rand spikes on ECB president Draghi’s tapering comments, Brazil’s unfolding crisis](https://feedsoft.ai/events/70778-rand-spikes-on-ecb-president-draghi-s-tapering-comments-brazil-s-unfolding.md) | -0.1% | -4.8% |
| USDBRL | 2024-08-30 | [Latin American Markets Take A Hit As US Data Shifts Fed Expectations - Finimize](https://feedsoft.ai/events/29083-latin-american-markets-take-a-hit-as-us-data-shifts-fed-expectations-finimize.md) | -0.8% | -3.6% |
| 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 | 2022-10-31 | [Brazil's real down after Lula wins presidential election; Bolsonaro yet to concede](https://feedsoft.ai/events/39344-brazil-s-real-down-after-lula-wins-presidential-election-bolsonaro-yet-to.md) | -5.8% | -1.1% |
| DXY | 2024-11-06 | [Dollar soars, euro tumbles as Trump wins US presidential election](https://feedsoft.ai/events/5806-dollar-soars-euro-tumbles-as-trump-wins-us-presidential-election.md) | +1.9% | +1.5% |
| DXY | 2016-11-11 | [Uncertainty over Trump leads to reevaluation of rate cuts in Brazil - BNamericas](https://feedsoft.ai/events/74027-uncertainty-over-trump-leads-to-reevaluation-of-rate-cuts-in-brazil-bnamericas.md) | +1.4% | +0.8% |
| DXY | 2024-08-30 | [Latin American Markets Take A Hit As US Data Shifts Fed Expectations - Finimize](https://feedsoft.ai/events/29083-latin-american-markets-take-a-hit-as-us-data-shifts-fed-expectations-finimize.md) | +0.2% | -0.9% |

## Sources

- bnamericas.com: https://www.bnamericas.com/en/news/brazil-takes-a-hit-as-trump-elected-us-president

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