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The Brazilian real closed at 3.99 per US dollar, its first close below 4 in five weeks and a rebound from a record low of nearly 4.2 two weeks earlier. The currency has still lost about 17% since the start of the year.
The move followed signs of two clear presidential election frontrunners, while the Argentine peso fell after the IMF agreed a revised $57.1 billion program.
A stronger real lowers the local cost of dollar-priced imports such as feed ingredients and fertilizer, and it can reduce Brazilian farmer export margins on soybeans, corn and meal. The effect on world feed prices is modest unless the currency keeps recovering.
en.mercopress.comSep 28, 2018After 213 past bearish macro events, Brazilian Real (BRL per USD) moved a median -0.2% over 5 sessions (46% higher; middle half -1.5% to +0.9%), and +0.2% 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.
