Brazil's Real Posts Worst Week in Two Months on Fiscal Concern
- Government likely to freeze half of previously expected cut
- Country effectively giving up on primary surplus target: Valor
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Brazil’s real posted its biggest weekly loss since mid-December on speculation the government will abandon its fiscal target this year and slow the pace of spending cuts, undermining pledges to shore up the deficit.
The real weakened 2.4 percent this week, to 4.0030 per dollar Friday. It earlier rose 0.2 percent, as a global rally in commodity prices improved the outlook for Brazil’s raw-material exports.