Brazilian Real Declines as Fed Speakers Seen Bolstering Dollar
- Lawmakers approved legislation that may boost fiscal revenue
- Real is world's worst-performing major currency this year
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Brazil’s real declined as comments from Federal Reserve officials reinforced the view that U.S. interest rates will rise this year, which would make higher-yielding currencies less attractive to investors.
The real briefly extended its losses against the dollar after normally dovish New York Fed President William Dudley said the central bank may need to begin tightening. Fed President James Bullard of St. Louis earlier urged raising target rates, while Chicago Fed leader Charles Evans stressed any increases should be “gradual.” Speculation of a December U.S. rate increase offset a government victory in Brazil’s congress, where lawmakers approved a measure to increase revenue.