# Coronavirus and current account deficit hit the Brazilian Real against the dollar — MercoPress

> The Brazilian real hit a two-month low against the dollar, with the dollar rising more than 1% to 4.2720 reais, near its record high. The real has fallen 6% this month amid coronavirus-driven risk aversion and a wider current account deficit.

- Date: 2020-01-31 · published 2020-01-31T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/55285-coronavirus-and-current-account-deficit-hit-the-brazilian-real-against-the
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A weaker real makes Brazilian soybean, corn and meal exports more competitive on world markets, which can pressure dollar-denominated feed prices lower. Expected Selic rate cuts add to the currency weakness.

## Read by commodity

- SBM: bearish ▼
- CORN: bearish ▼
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2018-07-19 | [Brazilian Real and Argentine Peso lose ground against the dollar — MercoPress](https://feedsoft.ai/events/64233-brazilian-real-and-argentine-peso-lose-ground-against-the-dollar-mercopress.md) | -3.5% | +1.9% |
| USDBRL | 2018-06-06 | [Brazilian currency drops against the US dollar \| AP News](https://feedsoft.ai/events/5378-brazilian-currency-drops-against-the-us-dollar-ap-news.md) | -2.7% | +2.7% |
| USDBRL | 2024-11-29 | [What is happening to BRL as the Brazilian Real collapses against the US Dollar](https://feedsoft.ai/events/27617-what-is-happening-to-brl-as-the-brazilian-real-collapses-against-the-us-dollar.md) | +1.7% | +5.6% |
| USDBRL | 2026-06-02 | [Brazilian Real: Politics drive correction against US Dollar – Commerzbank](https://feedsoft.ai/events/12077-brazilian-real-politics-drive-correction-against-us-dollar-commerzbank.md) | +2.7% | +2.7% |
| USDBRL | 2020-03-12 | [Is coronavirus the only one to blame for Brazilian Real’s rout?](https://feedsoft.ai/events/6395-is-coronavirus-the-only-one-to-blame-for-brazilian-real-s-rout.md) | +9.2% | +10.4% |
| SBM | 2024-11-29 | [What is happening to BRL as the Brazilian Real collapses against the US Dollar](https://feedsoft.ai/events/27617-what-is-happening-to-brl-as-the-brazilian-real-collapses-against-the-us-dollar.md) | -1.3% | +2.2% |
| SBM | 2026-06-02 | [Brazilian Real: Politics drive correction against US Dollar – Commerzbank](https://feedsoft.ai/events/12077-brazilian-real-politics-drive-correction-against-us-dollar-commerzbank.md) | -8.7% | -9.3% |
| SBM | 2022-05-31 | [In Depth: Behind the Yuan’s Tumble Against the Dollar - Caixin Global](https://feedsoft.ai/events/41602-in-depth-behind-the-yuan-s-tumble-against-the-dollar-caixin-global.md) | -5.5% | +1.5% |

## Sources

- en.mercopress.com: https://en.mercopress.com/2020/01/31/coronavirus-and-current-account-deficit-hit-the-brazilian-real-against-the-dollar

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