Brazil Real, Stocks Decline as Vote on Budget Bill Is Delayed
- Senate vote is postponed after failure to achieve a quorum
- Delay implies lack of support for budget-cutting measures
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Brazil’s stocks and currency declined as a delay in voting on a budget bill raised concern that it may take longer than expected to rein in the fiscal deficit.
The real weakened 0.8 percent to 3.2330 per dollar at 3:35 p.m. in Sao Paulo after gaining as much as 0.2 percent, and the Ibovespa’s drop was led by companies that depend on domestic demand. The Senate ended a session last night without voting on a bill that frees up as much as 30 percent of the federal budget because there was no quorum.