Brazilian Real Drops to Five-Month Low as Trade Deficit Widens

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Brazil’s real fell to a five-month low in an emerging-market selloff as economists reduced their currency forecast and the trade deficit widened to a record.

The real depreciated 1.1 percent to 2.4403 per dollar at the close in Sao Paulo, the weakest level since Aug. 21. A Bloomberg customized index tracking 20 emerging-market currencies fell 0.4 percent today to the lowest since 2009 after declining 3 percent last month. The Bloomberg-JPMorgan Latin America Currency Index of the region’s most-traded currencies, slid 1 percent today to a decade low.