Brazilian Real Falls to 12-Year Low as Deficit Projected in 2016
- Fiscal outlook adds to concern nation faces junk rating
- Real leads declines among world's major dollar counterparts
Why Emerging Market Currency Risks Are Mounting
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Brazil’s real fell to a fresh 12-year low and led losses among major currencies as a projected deficit in 2016 added to speculation that the nation will slip to a junk credit rating.
A gauge of volatility rose to the highest level since April after the government said that it expects a shortfall before interest payments of about 0.5 percent of gross domestic product, compared with a 0.7 percent projected surplus announced in July. The real extended its drop as Moody’s Investors Service and Fitch Ratings said the budget reflects the difficulty Brazil faces in shoring up accounts.