Brazil’s real weakened the most among emerging-market currencies after lawmakers approved amendments to a retirement bill that would boost government spending, dealing a blow to efforts to shore up the country’s finances.
The real dropped 0.7 percent to 3.9748 per dollar at 12:18 p.m. in Sao Paulo, ending two days of gains. The real is down 33 percent this year, the most among developing nations, amid concern the government will struggle ward off credit-rating cuts as the country heads into its longest recession since the 1930s.
The Lower House approved a measure that makes it easier for workers to retire at a younger age receiving full benefits and allows retirees to boost pensions by taking on a new job. The bill still needs Senate approval. President Dilma Rousseff’s efforts to trim spending and raise taxes have met resistance from lawmakers concerned that the moves will hurt Brazil’s middle class. Congress on Wednesday postponed a key vote on presidential vetoes of spending bills, delaying a showdown until next Tuesday.
Brazil Energy Insight 
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