Brazil’s Real Drops to 12-Year Low as Analysts See Deeper Slump
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The real declined to a 12-year low as a deeper projected contraction in Brazil’s economy and the government’s failure to meet fiscal targets added to speculation that the nation is facing a rating cut.
The currency tumbled 5 percent last week after Finance Minister Joaquim Levy asked lawmakers to cut a key budget goal as tax collection eroded. Analysts from Moody’s Investors Service, which visited central bank and Finance Ministry officials earlier this month, adopted a negative outlook on Brazil’s credit grade in September.