Economics
Brazil Drops as Federal Reserve Caution Offsets State Debt Deal
- Yellen signals renewed doubts on strength of U.S. economy
- Federal government reaches deal on $126 billion of state debt
This article is for subscribers only.
The real dropped after Federal Reserve Chair Janet Yellen signaled renewed doubts about the strength of the world’s largest economy, offsetting local optimism that Brazil’s government is making inroads toward cleaning up its fiscal house.
The currency fell 0.5 percent to 3.4133 per dollar on Tuesday, after earlier advancing as much as 1.1 percent following gains in emerging markets on signs the campaign for Britain to stay in the EU was gaining momentum.