Brazil's Real Plunges Ahead of New Fiscal Target Announcement

  • Vale extends three-day gain, while Itau and Petrobras Drop
  • Five-Year CDS approached highest since 2008 as bonds slump

Brazil's Credit Rating Cut to Junk by Fitch

Brazil’s real dropped to the lowest in seven weeks after Fitch Ratings handed Latin America’s largest economy its second junk credit grade, a move that may compel some institutional investors to dump the nation’s assets. The Ibovespa followed gains in global stocks.

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