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The Brazilian real fell to fresh yearly lows against the US dollar on August 29, 2018, ahead of the October elections. It recovered later in the session even as other emerging-market currencies, including the Turkish lira, came under pressure.
ABN AMRO says the real has lost close to 20% against the dollar this year and that its fundamentals are stronger than its current pricing suggests.
The real's sharp 2018 depreciation makes Brazilian soy, corn and meal cheaper for dollar buyers and encourages Brazilian export selling. If the currency recovers on better risk sentiment, Brazilian export prices would firm.
exchangerates.org.ukFrançois AuréAug 30, 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.
