# Brazilian Real (BRL USD) Plunges to Record Low as Rate Cut Seen - Bloomberg

> Brazil's real fell to a record intraday low of 4.6655 per dollar on Thursday, March 5, 2020. Economy Minister Paulo Guedes blamed the slide on the coronavirus epidemic's economic impact and warned the currency could weaken to 5 per dollar. He said the move reflected the epidemic rather than a change in Brazil's risk perception.

- Date: 2020-03-05 · published 2020-03-05T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/9274-brazilian-real-brl-usd-plunges-to-record-low-as-rate-cut-seen-bloomberg
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A weaker real lowers the dollar cost of Brazilian exports, which can pressure dollar-denominated soybean, corn and meal prices. It also raises the cost of imported feed ingredients for Brazilian buyers.

## Read by commodity

- SOY: bearish ▼
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2020-03-05 | 1 | +2.3% | 3.7 | Same-day record intraday low of the real at 4.6655 per dollar, driven by coronavirus-related risk-off sentiment and rate-cut expectations, directly explains the 2.28% BRL/USD move (currency/sentiment). |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-12-17 | [USD/BRL: Brazilian Real, Stocks and Bonds Plummet as Panic Sweeps Markets - Bloomberg](https://feedsoft.ai/events/27151-usd-brl-brazilian-real-stocks-and-bonds-plummet-as-panic-sweeps-markets.md) | +2.0% | -0.2% |
| USDBRL | 2019-09-19 | [Brazil Cuts Interest Rate to Fresh Record Low](https://feedsoft.ai/events/57287-brazil-cuts-interest-rate-to-fresh-record-low.md) | +2.0% | +1.6% |
| USDBRL | 2016-11-10 | [USD/BRL: Brazilian real tumbles to lowest since June — Octa](https://feedsoft.ai/events/5468-usd-brl-brazilian-real-tumbles-to-lowest-since-june-octa.md) | +6.1% | +4.5% |
| USDBRL | 2020-08-20 | [Brazil’s Real Falls as Shock Senate Vote Fuels Fiscal Woes - Bloomberg](https://feedsoft.ai/events/51814-brazil-s-real-falls-as-shock-senate-vote-fuels-fiscal-woes-bloomberg.md) | +1.9% | -4.5% |
| USDBRL | 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) | +5.6% | +5.6% |
| SOY | 2022-08-19 | [China Yuan Slumps to Near-Two-Year Low Against USD as Rate Differential Widens - Bloomberg](https://feedsoft.ai/events/40262-china-yuan-slumps-to-near-two-year-low-against-usd-as-rate-differential-widens.md) | +3.8% | -3.1% |
| SOY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -2.8% | -1.9% |
| SOY | 2022-04-25 | [Brazilian real tumbles amid rallying dollar and local tensions](https://feedsoft.ai/events/6864-brazilian-real-tumbles-amid-rallying-dollar-and-local-tensions.md) | -0.5% | -0.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2020-03-05/brazilian-real-plunges-to-4-60-per-dollar-amid-rate-cut-bets

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