# Why the Fed's 4.0% rate and Brazil's 13.75% gap matters to your portfolio

> Brazil’s Copom held the Selic rate at 13.75% on November 4, leaving a 9.75-percentage-point gap between Brazil’s rate and the US Federal Reserve’s upper target limit. The article says Brazil’s rate-cutting cycle was paused after the October 25 election and discusses the potential effect of the yield difference on international capital flows.

- Date: 2026-11-08 · published 2026-11-08T21:08:40.577Z
- Category: macro · region Brazil and United States · magnitude low
- Page: https://feedsoft.ai/events/87985-why-the-fed-s-4-0-rate-and-brazil-s-13-75-gap-matters-to-your-portfolio
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

The interest-rate premium may attract capital to Brazil and support the real, which could reduce the local-currency cost of imported feed and fertilizer. That effect depends on fiscal and political risks as well as the rate differential.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-07-23 | [Brazil's real gains on rate-hike bets, but loses for the week \| Financial Post](https://feedsoft.ai/events/46261-brazil-s-real-gains-on-rate-hike-bets-but-loses-for-the-week-financial-post.md) | -3.0% | +3.8% |
| USDBRL | 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) | +3.9% | +0.8% |
| USDBRL | 2022-10-28 | [Why did the Brazilian Real and Mexican Peso outperform USD? \| LSEG](https://feedsoft.ai/events/39346-why-did-the-brazilian-real-and-mexican-peso-outperform-usd-lseg.md) | -3.5% | +1.6% |
| USDBRL | 2026-07-29 | [Brazilian Real Gains as Fed Holds Rates](https://feedsoft.ai/events/18564-brazilian-real-gains-as-fed-holds-rates.md) | -0.0% | +0.7% |
| USDBRL | 2026-06-18 | [BRL Weakens After BCB and Fed Rate Decisions](https://feedsoft.ai/events/10642-brl-weakens-after-bcb-and-fed-rate-decisions.md) | +2.2% | +1.0% |

## Sources

- brznews.com: https://brznews.com/article/currencies-why-the-fed-s-4-0-rate-and-brazil-s-13-75-gap-matters-to-your-portfol

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