# Brazilian real tumbles amid rallying dollar and local tensions

> The Brazilian real fell sharply after a 3.91% drop on Friday and a further 1.44% decline on Monday, with its depreciation reaching its highest level since the start of the pandemic. The move reflected a stronger dollar as well as political tensions in Brasilia, including a presidential pardon of an allied congressman.

- Date: 2022-04-25 · published 2022-04-25T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/6864-brazilian-real-tumbles-amid-rallying-dollar-and-local-tensions
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real can make Brazilian soybean and corn exports cheaper in dollar terms, which can add competitive pressure on world feed grain and meal prices.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2022-04-25 | 1 | +3.6% | 4.0 | Directly describes the BRL slide into 2022-04-25, citing a stronger dollar and Brasilia political tensions (presidential pardon) that hit sentiment and drove the further Monday decline. |
| USDBRL | 2022-04-28 | 5 | +8.1% | 4.7 | A further 1.44% BRL decline on Monday amid a strong dollar and domestic political tension (presidential pardon) added to the depreciation via risk premium. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2019-06-27 | [Brazilian real falls on economy worries, dollar lifts other Latam forex - Pension Policy International](https://feedsoft.ai/events/58796-brazilian-real-falls-on-economy-worries-dollar-lifts-other-latam-forex-pension.md) | -1.0% | -1.3% |
| SOY | 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) | -5.5% | -5.4% |
| SOY | 2020-03-05 | [Brazilian Real (BRL USD) Plunges to Record Low as Rate Cut Seen - Bloomberg](https://feedsoft.ai/events/9274-brazilian-real-brl-usd-plunges-to-record-low-as-rate-cut-seen-bloomberg.md) | -3.4% | -4.0% |
| SOY | 2024-01-23 | [Brazil's real weakens past 5.00 per dollar for 1st time since November](https://feedsoft.ai/events/32323-brazil-s-real-weakens-past-5-00-per-dollar-for-1st-time-since-november.md) | -2.5% | -3.7% |
| SOY | 2025-02-19 | [Brazilian Real Weighed by Trade Fears](https://feedsoft.ai/events/26258-brazilian-real-weighed-by-trade-fears.md) | -0.7% | -2.5% |
| DXY | 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) | -0.4% | +1.6% |
| DXY | 2022-04-27 | [Brazilian real, Chilean peso steady against raging dollar \| Financial Post](https://feedsoft.ai/events/6862-brazilian-real-chilean-peso-steady-against-raging-dollar-financial-post.md) | +0.6% | -0.3% |
| DXY | 2017-05-18 | [Dollar Rebounds, Brazilian Real Plunges as Politics Dominates - WSJ](https://feedsoft.ai/events/4356-dollar-rebounds-brazilian-real-plunges-as-politics-dominates-wsj.md) | -0.1% | -0.8% |

## Sources

- fxempire.com: https://www.fxempire.com/news/article/brazilian-real-tumbles-amid-rallying-dollar-and-local-tensions-979123
- streetregister.com: https://www.streetregister.com/2022/04/25/brazilian-real-tumbles-amid-rallying-dollar-and-local-tensions-breaking/

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