Brazilian Currency Slides as Rousseff Faces Political Challenge

Brazil’s real fell to a one-week low as President Dilma Rousseff’s plan to cut budget deficits and avoid a credit downgrade faced a challenge in Congress.

The currency slipped for a third straight day as Folha de S.Paulo reported over the weekend that Eduardo Cunha, the head of the lower house, pledged to block a bill that would bolster revenue by allowing Brazilians to repatriate funds without facing charges of tax evasion. A reduction in the nation’s sovereign rating by Moody’s Investors Service is more likely if Brazil doesn’t make economic changes, Finance Minister Joaquim Levy said in an interview with Folha conducted last week.