How a Lewd Presidential Tweet Could Make Your Morning Coffee Cheaper
(Bloomberg) -- Lewd tweets and coffee prices: Who knew how much impact one could have on the other?
Brazil’s President Jair Bolsonaro is in hot water after he shared a lewd video this week that drew criticism from opponents and supporters alike, including the military. The tweet reverberated across markets, helping to send the nation’s currency lower.
Brazil is the world’s biggest coffee producer and exporter. When the real falls, it encourages the nation’s shippers to send more beans abroad, since they fetch dollars in return.
Coffee prices were already in the dumps, thanks to an overabundance of supply. But recent losses for the real have only added to the malaise. May arabica futures dropped 1.7 percent this week in New York to settle at 98.5 cents a pound.
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