# How a Rising U.S. Dollar Puts Argentina's and Brazil's Economies at Risk

> Analysis from Stratfor argues that the strengthening US dollar is driving capital flight from emerging markets, with Argentina's peso and Brazil's real among the worst performers. Argentina faces limited capacity to handle the currency pressure, while Brazil's trade surplus and low inflation provide some buffer.

- Date: 2018-06-28 · published 2018-06-28T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/64805-how-a-rising-u-s-dollar-puts-argentina-s-and-brazil-s-economies-at-risk
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A stronger dollar and weaker Brazilian real make Brazilian soybean and corn exports cheaper for buyers, which tends to pressure global feed grain and soymeal prices.

## Read by commodity

- SBM: bearish ▼
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-05-14 | [Brazil sees second-largest dollar outflow ever](https://feedsoft.ai/events/30477-brazil-sees-second-largest-dollar-outflow-ever.md) | -1.2% | +3.7% |
| 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 | 2024-09-23 | [Dollar rises more than 1% at the start of a week marked by inflation data in Brazil and the US \| Brasil 247](https://feedsoft.ai/events/28517-dollar-rises-more-than-1-at-the-start-of-a-week-marked-by-inflation-data-in.md) | -1.1% | +3.9% |
| USDBRL | 2018-08-13 | [Turkish crisis drives up dollar in Brazil - ANBA News Agency](https://feedsoft.ai/events/9469-turkish-crisis-drives-up-dollar-in-brazil-anba-news-agency.md) | +2.2% | +6.6% |
| USDBRL | 2022-04-28 | [Brazil real hit by surging dollar, focus shifts to earnings \| Financial Post](https://feedsoft.ai/events/6865-brazil-real-hit-by-surging-dollar-focus-shifts-to-earnings-financial-post.md) | -0.2% | -3.1% |
| SBM | 2019-08-27 | [To shore up peso, Argentina breaks IMF rule \| Business and Economy \| Al Jazeera](https://feedsoft.ai/events/57874-to-shore-up-peso-argentina-breaks-imf-rule-business-and-economy-al-jazeera.md) | -1.7% | +0.8% |
| SBM | 2018-01-25 | [BCRA shift puts Argentine peso under pressure \| Capital Economics](https://feedsoft.ai/events/67268-bcra-shift-puts-argentine-peso-under-pressure-capital-economics.md) | -1.2% | +10.2% |
| SBM | 2022-06-28 | [Argentina's economic crisis whack-a-mole goes into overdrive \| Reuters](https://feedsoft.ai/events/41227-argentina-s-economic-crisis-whack-a-mole-goes-into-overdrive-reuters.md) | +2.3% | +0.9% |

## Sources

- library.stratfor.com: https://library.stratfor.com/article/rising-dollar-argentina-brazil-economy-risk

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