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Brent crude oil rose 9 percent on Friday, marking what Robin Brooks described as a turning point in market sentiment.
Rather than prompting a broad sell-off across emerging markets, currencies of South Africa, Brazil, and Chile rallied. Brooks noted that markets are now shifting back to rewarding commodity exporters, a trend last seen in 2022 after the Ukraine invasion.
The renewed appetite for commodity-driven currencies follows patterns observed during previous surges in natural resource prices. This developing trend is consistent with Robin Brooks’s observations on the strong performance of silver and gold amid heightened geopolitical risk, as seen during the recent commodity rally. Moreover, the resilience of Brazil’s currency mirrors broader themes from the country's economic rebound in spite of underlying challenges, a topic Brooks explored in detail following past oil price impacts.