Brazil's Real Falls Amid Renewed Concern Over Fiscal Deficits
- Folha report fuels speculation government will abandon target
- Annual inflation unexpectedly accelerated in January
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Brazil’s real slipped, paring its second consecutive weekly advance, on speculation the government will abandon its fiscal target this year and slow the pace of spending cuts.
The real weakened 0.3 percent to 3.9039 per dollar in Sao Paulo, leaving it up 2.4 percent this week. The currency is the best performer in Latin America this year after losing more than a third of its value in 2015 on concern the government will struggle to shore up the nation’s finances.