Brazil’s Currency Advances as Congress Avoids Spending Increases

Brazil’s real gained from a record low as lawmakers failed to overturn some presidential vetoes that had limited government spending, a victory for President Dilma Rousseff and her attempt to shore up fiscal accounts.

Brazil’s currency advanced 0.7 percent to 4.0213 per dollar at 9:09 a.m. in Sao Paulo, strengthening from the lowest level since it was created in 1994. It gained the most among 31 major currencies tracked by Bloomberg.

Rousseff in recent months vetoed legislation that both houses of Congress approved against her wishes to increase salaries and pension payments. In a voting that started late Tuesday, legislators sustained all but six of the 32 vetoes under consideration. Legislators will take up additional vetoes in its next session, including one that blocks pay hikes for some government workers. In total, the measures would have increased spending by 128 billion reais ($32 billion) through 2019, according to Budget Ministry estimates.

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