Brazil's Real Posts Best Week Since 2011 as Fiscal Debate Eases
- Currency also joins emerging-market rally on Fed speculation
- Ibovespa has longest advance since 2013 as Vale jumps
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Brazil’s real extended its best weekly rally since 2011 and stocks gained as the political debate over measures to shore up the budget eased and speculation the U.S. will refrain from raising interest rates spurred an advance in emerging markets.
The currency climbed to a one-month high after President Dilma Rousseff on Oct. 2 announced a cabinet reshuffle as she tries to rebuild the nation’s finances to avoid another credit-rating downgrade. The advance accelerated as signs of weakness in the American economy sparked bets the Federal Reserve won’t boost borrowing costs this year. The benchmark stock gauge gained for a ninth day, posting its longest winning streak in two years.