Brazil Real Leads Losses as Goldman Sachs Doubts Political Will
- Government's fiscal plan needs approval from hostile congress
- Ibovespa rebounds after Tombini signals rates on hold
Can Rousseff, Levy Hold Onto Power in Brazil
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Brazil’s real led global losses as Goldman Sachs Group Inc. questioned the viability of government proposals to shore up its finances. The Ibovespa rebounded on speculation interest rates will be kept on hold.
The currency traded near a 12 year-low, extending this year’s rout to 31 percent and posting the biggest slide among the world’s 16 major currencies. Most of the government measures proposed on Monday require approval from Congress, which could be difficult as President Dilma Rousseff struggles with record-low popularity and the longest recession since the 1930s, said Alberto Ramos, the chief Latin America economist for Goldman Sachs.