Brazil Real Drops to Lowest Level in Decade as Commodities Sink

Brazil’s real declined to a 10-year low as falling commodities prices damped the outlook for growth in Latin America’s biggest economy.

The real dropped 2.2 percent to 2.8324 per dollar at the close of trade, the weakest level on a closing basis since November 2004. The drop was the biggest among 31 currencies tracked by Bloomberg. Swap rates, a gauge of expectations for changes in Brazil’s borrowing costs, increased 0.12 percentage point to 13 percent on the contract maturing in January 2016.