Brazil’s Real Hits All-Time Low as Spending Cuts Disappoint
- Plan to cut government spending falls flat with investors
- Currency is down 19% this year, the worst among majors
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The Brazilian real dropped to a record low and stocks slumped the most since early 2023 as a proposal to cut some $12 billion in public spending disappointed investors who have grown increasingly concerned about the country’s budget deficit.
The currency fell as much as 1.5% on Thursday to 6.02 per dollar. Swap rates surged more than 40 points, and the country’s benchmark stock index dropped 2.4%.