Brazil Real Extends Worst Monthly Drop Since March on Fiscal Woe

The real fell to a 12-year low and extended its biggest monthly decline since March as budget reports added to concern that Brazil will be lowered to junk.

Standard & Poor’s cited a slowing economy and fiscal turmoil Tuesday when it changed its outlook to negative on the nation’s credit rating, already at the lowest level of investment grade. The central bank signaled the following day it will avoid further increases in interest rates, limiting the desirability of the nation’s assets to global investors looking for higher yields.