# USD/BRL surges to fresh record highs above 5.70 after Justice Minister Moro resigns - Forex Crunch

> The Brazilian real sold off sharply after Justice Minister Sergio Moro resigned, accusing President Bolsonaro of political interference in federal police. USD/BRL hit a record 5.7126 before easing to about 5.66, and the Bovespa fell nearly 7%.

- Date: 2020-04-24 · published 2020-04-24T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/8725-usd-brl-surges-to-fresh-record-highs-above-5-70-after-justice-minister-moro
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A weaker real lowers the dollar cost of Brazilian soybean and meal exports, which can weigh on global soy complex prices, while raising import costs for Brazilian feed makers.

## Read by commodity

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

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-04-24 | 1 | +4.3% | 3.1 | Moro's resignation and accusations of political interference triggered a sentiment-driven selloff, pushing USD/BRL to a record 5.71 and the Bovespa down nearly 7%, which directly explains the 4.33% one-day BRL move. |
| USDBRL | 2020-04-24 | 5 | +8.2% | 3.8 | Moro's resignation and his accusations of political interference triggered a sharp real sell-off, with USD/BRL hitting a record 5.7126 on 2020-04-24, which directly explains much of the 8.2% weekly move via a political-risk sentiment shock and capital outflows. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-04-24 | [Bolsonaro in crisis mode after Brazil justice minister quits \| AP News](https://feedsoft.ai/events/8724-bolsonaro-in-crisis-mode-after-brazil-justice-minister-quits-ap-news.md) | -0.4% | +2.7% |
| USDBRL | 2020-05-25 | [USD/BRL: Political headwinds facing the real - CIBC - Forex Crunch](https://feedsoft.ai/events/7444-usd-brl-political-headwinds-facing-the-real-cibc-forex-crunch.md) | -3.5% | -6.2% |
| USDBRL | 2018-07-18 | [Brazil: Presidential race about to start - Rabobank - Forex Crunch](https://feedsoft.ai/events/64234-brazil-presidential-race-about-to-start-rabobank-forex-crunch.md) | -3.2% | +0.6% |
| USDBRL | 2019-09-30 | [USD/BRL: Year end forecast raised by 10-cents to 3.90 - Rabobank - Forex Crunch](https://feedsoft.ai/events/57288-usd-brl-year-end-forecast-raised-by-10-cents-to-3-90-rabobank-forex-crunch.md) | -2.3% | -4.3% |
| USDBRL | 2019-04-23 | [Brazil: Economy under pressure? - TDS - Forex Crunch](https://feedsoft.ai/events/59783-brazil-economy-under-pressure-tds-forex-crunch.md) | +0.2% | +4.7% |
| SBM | 2020-04-24 | [Bolsonaro in crisis mode after Brazil justice minister quits \| AP News](https://feedsoft.ai/events/8724-bolsonaro-in-crisis-mode-after-brazil-justice-minister-quits-ap-news.md) | +0.3% | -2.1% |
| SBM | 2020-05-19 | [Vietnam: External headwinds likely to weigh on growth - Standard Chartered - Forex Crunch](https://feedsoft.ai/events/53427-vietnam-external-headwinds-likely-to-weigh-on-growth-standard-chartered-forex.md) | -0.4% | +1.0% |
| SBM | 2018-09-27 | [Argentina peso slides after record loan with IMF \| AP News](https://feedsoft.ai/events/63331-argentina-peso-slides-after-record-loan-with-imf-ap-news.md) | -0.1% | -0.5% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/04/24/usd-brl-surges-to-fresh-record-highs-above-5-70-after-justice-minister-moro-resigns/

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