Brazil's Credit Risk Drops to Seven-Week Low and Real Declines
- Investor sentiment improves while government pushes measures
- Real still worst performer among major currencies in 2015
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Brazil’s sovereign risk declined to the lowest level since September amid signs investor sentiment is slowly improving and as the government moves closer to a vote in Congress that will help it boost revenue.
The real dropped after the Institute for Supply Management said U.S. service industries unexpectedly expanded in October at the second-fastest pace in a decade, increasing chances of a Federal Reserve interest-rate increase and dimming appetite for emerging-market currencies. The real is the world’s worst performer this year with a 30 percent decline.