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Brazil Real Joins Global Rout as Meirelles Skips Plan Details

  • Newly appointed finance minister says Brazil must cut spending
  • Central bank refrains from selling reverse-swap contracts
Bloomberg business news

Michel Temer's Tall Task to Heal Brazil's Economy

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Brazil’s real joined a selloff in global currencies against the dollar as newly appointed Finance Minister Henrique Meirelles refrained from giving details on how to tackle the nation’s ballooning fiscal deficit.

The real erased its gain for the week as the U.S. currency climbed after retail data re-ignited speculation the Federal Reserve may raise interest rates this year, dimming the outlook for emerging markets. Meirelles, who on Thursday took over as finance minister in Acting President Michel Temer’s new cabinet, said he would take tough measures to stop government spending from growing in nominal terms and to win back investor trust.