Brazil’s Real Strengthens as Fed Outlook Offsets Fiscal Optimism
- Lawmakers approved bill to cap growth in public spending
- Major currencies decline with increased Fed rate hike bets
Are Prices Improving for Latin American Commodities?
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Brazil’s real advanced, dodging a global slump in emerging-market currencies, after lawmakers approved a proposal to limit growth in public spending, a key measure to trim the near-record budget deficit.
The real added 0.3 percent to 3.1954 per dollar Tuesday in Sao Paulo after dropping as much as as 0.6 percent earlier as the Bloomberg Commodity Index fell 0.7 percent. An index of currencies from developing nations fell the most in a month as increased bets on a Federal Reserve interest-rate hike bolstered the dollar and pushed down commodity prices. Materials such as iron ore, soybeans and oil account for more than half of Brazil’s exports.