Brazil’s Real Drops After Fed Reduces Pace of Monetary Stimulus
This article is for subscribers only.
Brazil’s real fell to a five-month low as the Federal Reserve said it will further cut bond purchases that have supported emerging-market assets.
The real depreciated 0.6 percent to 2.4373 per U.S. dollar at the close in Sao Paulo, the weakest level since Aug. 21. It dropped along with most developing-nation currencies after the U.S. central bank’s decision today. Swap rates on contracts maturing in January 2015 climbed 19 basis points, or 0.19 percentage point, to 11.43 percent, the highest in two years.