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The Brazilian real has lost about 29-30% against the dollar so far in 2020, the worst performance among emerging-market currencies. Foreign banks have labeled it a toxic asset, citing the coronavirus, a worsening political environment and fears Brazil could lag the post-pandemic recovery.
Brazil's CDS risk measure rose 220% this year.
A weaker real raises the dollar cost of Brazilian exports and makes Brazilian grain, meal and other feed ingredients cheaper for foreign buyers, which tends to lift USD/BRL and can pressure global prices.
www1.folha.uol.com.brEduardo CucoloMay 25, 2020After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% 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.
