Brazil’s real dropped the most in emerging markets as accelerating U.S. inflation added to speculation the Federal Reserve will curtail a stimulus program that has supported the South American nation’s assets.
Brazil’s real was little changed after the government cut the maturity of foreign loans that are subject to a tax.
Brazil’s real erased its advance and closed at a three-week low as the nation posted its widest weekly trade deficit since February.
Brazil’s real climbed from a one-month low, rising along with other emerging-market currencies, as evidence of a global economic recovery encouraged demand for higher-yielding assets.
Brazil’s real dropped to a one-week low and swap rates declined as the central bank signaled that it was ready to end the world’s longest stretch of borrowing-cost increases.
"There is always a negative reaction for the real when polls show Rousseff has a chance of being re-elected."
- Reginaldo Galhardo on Jul 23, 2014