# EMERGING MARKETS-Brazil's real climbs again after central bank defends rate decision

> Brazil's real rose almost 1% on 22 May after central bank minutes were read as hawkish, and the bank said inflation expectations had become unanchored to the upside. The central bank had unexpectedly held the Selic rate at 6.50% the previous week. Commodity strength also lifted other Latin American currencies, with Chile's peso rising about 1.3% alongside higher copper prices.

- Date: 2018-05-22 · published 2018-05-22T12:00:00.000Z
- Category: market · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/9717-emerging-markets-brazil-s-real-climbs-again-after-central-bank-defends-rate
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A firmer real makes Brazilian export origin more expensive in dollar terms, which modestly supports world soybean and corn prices. The move is a routine currency rebound and has limited lasting effect on feed supply.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-05-22 | 1 | -2.0% | -3.5 | On 22 May the real rose almost 1% as the central bank's hawkish minutes and higher commodity prices boosted sentiment, which added to the dollar's decline against the real. |

## Sources

- cnbc.com: https://www.cnbc.com/2018/05/22/reuters-america-emerging-markets-brazils-real-climbs-again-after-central-bank-defends-rate-decision.html

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