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 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.
"Investors saw it as a sign that the Fed is on the brink of raising rates."
- Reginaldo Galhardo on Aug 22, 2014