Brazil’s Real Falls to Two-Week Low on U.S. Fed Tapering Concern

Brazil’s real dropped to a two-week low as the U.S. economy grew more than forecast, adding to speculation that the Federal Reserve will keep paring a stimulus program that has supported emerging markets.

The real declined 0.6 percent to 2.2457 per dollar in Sao Paulo, the weakest level on a closing basis since July 17. Swap rates, a gauge of expectations for interest-rate moves, rose nine basis points, or 0.09 percentage point, to 11.43 percent on the contract due in January 2017.