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The real hit its lowest nominal level in its 25-year history during the Covid-19 market panic. Analysts attribute the decline to a mix of global risk aversion, concerns about Brazil's growth, and political friction between President Bolsonaro and Congress.
Domestic political stress on top of the global sell-off suggests the real may stay weak longer, which keeps Brazilian export commodities competitive in dollar terms. The effect is bearish for dollar prices of Brazilian grains.
brazilian.reportNatália Scalzaretto12 mrt 2020Na 301 eerdere opwaarts macro-gebeurtenissen bewoog Braziliaanse real (BRL per USD) zich mediaan +0,4% over 5 sessies (57% hoger; middelste helft -1,2% tot +1,7%), en +1,0% over 20.
Bewegingen van de benchmark van elke grondstof sinds de laatste slotkoers vóór de gebeurtenis. Historische waarden bundelen eerdere gebeurtenissen van hetzelfde soort; ze beschrijven wat er gebeurde, niet wat zal gebeuren. Geen beleggingsadvies.
Analysis attributing the real's record-low rout to global Covid-19 risk aversion, growth concerns and political friction explains the demand for dollars and the weaker BRL.
Published days before the move, it attributes the real's record-low rout to global risk aversion, Brazil growth worries and Bolsonaro-Congress friction, which are sentiment drivers that carried into the March 16 drop.
Global risk aversion, growth worries and political friction with Congress pushed the real to record lows, giving the underlying drivers of the depreciation.
