Brazilian Real Drops on Global Pessimism

The Brazilian currency had its sharpest fall since the end of September as several negative events in financial markets worldwide declined appeal for higher-yielding assets and commodities, which are both the best trading possibilities in the Latin American nation.

After the Federal Reserve declined possibilities of interest rate hikes sooner than previously expected and Standard and Poor’s downgraded Greece’s credit rating for the second time this year, appeal for emergent-markets and higher-yielding currencies fell, affecting the real which dropped versus most of the 16 main traded currencies.

USD/BRL traded at 1.7935 as of 20:51 GMT from an opening rate of 1.7545 today.

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