# Brazil's real tumbles almost 4% on bets of aggressive Fed action

> The Brazilian real fell nearly 4% on Friday, leading losses among major emerging-market currencies. The move followed comments from Federal Reserve Chair Jerome Powell that a half-point rate hike would be on the table, and the dollar rose to a more than two-year high.

- Date: 2022-04-22 · published 2022-04-22T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/6860-brazil-s-real-tumbles-almost-4-on-bets-of-aggressive-fed-action
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of aggressive US rate hikes strengthen the dollar and pressure emerging-market currencies, which raises the cost of Brazilian dollar-priced exports and can weigh on global feed commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2022-04-28 | 5 | +8.1% | 4.7 | Powell's signal of a 50bp hike lifted the dollar to a two-year high and drove a ~4% one-day BRL drop, the largest single contributor to the 5-day move (currency/sentiment). |
| USDBRL | 2022-04-25 | 1 | +3.6% | 4.0 | The Friday 4/22 near-4% BRL drop on Powell's hawkish comments (50bp hike) and a two-year-high dollar set the stage and carried momentum into the Monday move, though it falls just before the window. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2026-10-26 | [Euro falls against dollar; Brazilian real tumbles after Lula election win](https://feedsoft.ai/events/17282-euro-falls-against-dollar-brazilian-real-tumbles-after-lula-election-win.md) | +7.6% | — |
| USDBRL | 2026-10-01 | [Brazilian Real Under Pressure Ahead of Election](https://feedsoft.ai/events/4935-brazilian-real-under-pressure-ahead-of-election.md) | -3.5% | +4.1% |
| USDBRL | 2026-08-28 | [Brazilian Real Weakens as Fed Hike Bets Rise](https://feedsoft.ai/events/18106-brazilian-real-weakens-as-fed-hike-bets-rise.md) | -1.2% | +0.4% |
| USDBRL | 2016-11-10 | [USD/BRL: Brazilian real tumbles to lowest since June — Octa](https://feedsoft.ai/events/5468-usd-brl-brazilian-real-tumbles-to-lowest-since-june-octa.md) | +6.1% | +4.5% |
| USDBRL | 2021-01-29 | [Brazil's real lags Latam FX on a barrage of weak data \| Financial Post](https://feedsoft.ai/events/49383-brazil-s-real-lags-latam-fx-on-a-barrage-of-weak-data-financial-post.md) | +0.5% | +3.2% |
| DXY | 2022-06-29 | [Fed rate hike bets hit Latam assets; Brazil's real jumps \| Financial Post](https://feedsoft.ai/events/41148-fed-rate-hike-bets-hit-latam-assets-brazil-s-real-jumps-financial-post.md) | +2.0% | +1.8% |
| DXY | 2026-08-28 | [Brazilian Real Weakens as Fed Hike Bets Rise](https://feedsoft.ai/events/18106-brazilian-real-weakens-as-fed-hike-bets-rise.md) | -0.2% | +1.7% |
| DXY | 2022-10-01 | [Analysts react as Aggressive Fed hikes rates another 75 basis points](https://feedsoft.ai/events/39757-analysts-react-as-aggressive-fed-hikes-rates-another-75-basis-points.md) | -0.2% | +0.1% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam/emerging-markets-brazils-real-tumbles-almost-4-on-bets-of-aggressive-fed-action-idUSL2N2WK1U3/

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