Brazil's Real Joins Global Selloff on Fed Wagers, Commodity Rout
- Dollar rallies on speculation Fed to lift rates this month
- Emerging-market currencies tumble to lowest level on record
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Brazil’s real followed a slump in major currencies as traders bolstered bets on higher U.S. interest rates reducing the appeal of emerging-market assets and as commodities tumbled.
The real dropped 0.4 percent to 3.7684 per dollar as a gauge of 20 developing-nation currencies sank to a record low on wagers the Federal Reserve will raise borrowing costs Dec. 16 and then undertake as many as two more increases in the next year. Oil fell to a six-year low, while copper and gold plunged, pulling the currencies of commodity-producing nations down. The global rout added to an already turbulent scenario in Brazil, where President Dilma Rousseff faces the threat of an impeachment.