Brazil's Real Weakens on Report Government Planning for Deficit
- Country will revise this year's budget target for the 3rd time
- Fitch Ratings lowered Brazil’s rating to the cusp of junk
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Brazil’s real weakened on speculation the government will change this year’s budget target to a deficit from a surplus, highlighting its inability to shore up the country’s finances.
Officials will revise this year’s budget target for the third time, forecasting a deficit excluding interest payments of 0.3 percent of gross domestic product, worse than the current goal of a 0.15 percent surplus, according to a report by Folha de S. Paulo. The government is also expected to scrap plans to revive a tax on financial transactions, according to Valor Economico.