Woes of Brazilian Real Continue

The Brazilian real continues to experience weakness. Today’s drop is a result of worse-than-expected macroeconomic data. Concerns about the government’s ability to tackle fiscal challenges, which the country is enduring, also played their role
Brazil’s retail sales rose 0.5 percent in September from the same month a year ago, missing the median forecast of 0.7 percent. President Dilma Rousseff is going to appoint a new finance minister, and market participants are nervous about this. Investors are worried that the new economic chief will not be independent enough to initiate reforms required to reinvigorate nation’s growth.
USD/BRL rose from 2.5948 to 2.6141 as of 14:20 GMT today.

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