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The Brazilian real and Mexican peso both rebounded strongly from pandemic lows, but their rallies began to diverge. The peso ran out of steam after appreciating about 15% since mid-April, while the real gained momentum after rebounding more than 20% from a record low.
The real was on track for its biggest weekly gain since 2008.
Stronger Brazilian and Mexican currencies reduce the local cost of dollar-priced feed and fertilizer imports. Divergence between the two suggests country-specific risks matter for buyers in each market.
financialpost.comReutersJun 5, 2020
reuters.comJun 5, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
The real was on track for its biggest weekly gain since 2008 with momentum from risk-on flows, describing the same window's appreciation.
