# EMERGING MARKETS-Brazil real slumps despite intervention amid emerging market selloff

> The Brazilian real weakened as much as 2% to 3.78 per dollar, its weakest since March 2016, as a global emerging market selloff led investors to unwind bets on stronger EM currencies. The currency fell for a sixth straight day despite increased central bank intervention, and had lost 11.3% since the start of the year. Rising US bond yields, driven by expectations of Fed rate hikes, were pulling capital out of higher-yielding emerging markets.

- Date: 2018-05-18 · published 2018-05-18T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/9713-emerging-markets-brazil-real-slumps-despite-intervention-amid-emerging-market
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker real lowers the dollar cost of Brazilian soybeans, corn and meal, which tends to pressure world feed grain and meal prices while encouraging Brazilian export selling. Feed importers may benefit from cheaper Brazilian origin, but volatility adds hedging costs.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-05-18 | 5 | +4.3% | 2.8 | Directly describes the real's slump to 3.78 per dollar on 2018-05-18 for a sixth straight day despite central bank intervention, as an EM selloff and rising US yields drove capital out, which is the move in question. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2016-11-11 | [Brazil real extends slump despite increased intervention](https://feedsoft.ai/events/5466-brazil-real-extends-slump-despite-increased-intervention.md) | +0.7% | -0.4% |
| USDBRL | 2019-11-26 | [EMERGING MARKETS-Brazilian c.bank intervenes as real slumps; Colombian peso drops on tax reform](https://feedsoft.ai/events/56346-emerging-markets-brazilian-c-bank-intervenes-as-real-slumps-colombian-peso.md) | -0.5% | -3.1% |
| USDBRL | 2021-03-03 | [Brazil real slumps to three-month low as central bank intervenes selling $2bn - Markets - Business Recorder](https://feedsoft.ai/events/12205-brazil-real-slumps-to-three-month-low-as-central-bank-intervenes-selling-2bn.md) | +1.7% | +0.6% |
| USDBRL | 2022-11-10 | [EMERGING MARKETS-Brazil's real sinks 4%, other FX rally on dollar weakness](https://feedsoft.ai/events/38888-emerging-markets-brazil-s-real-sinks-4-other-fx-rally-on-dollar-weakness.md) | +6.0% | +1.7% |
| USDBRL | 2020-03-12 | [Brazil ups FX intervention, pledges to ease bond market strains](https://feedsoft.ai/events/6394-brazil-ups-fx-intervention-pledges-to-ease-bond-market-strains.md) | +9.2% | +10.4% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/05/18/reuters-america-emerging-markets-brazil-real-slumps-despite-intervention-amid-emerging-market-selloff.html

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