Brazil Real Rallies to Best Week in Four Years on Fed Outlook

Brazil’s real is on course to post its best weekly gain in more than four years as speculation the Federal Reserve will delay raising interest rates because of weakness in the U.S. economy bolstered global appetite for riskier assets.

The real gained 1.2 percent to 3.7418 per dollar at 9:41 a.m. in Sao Paulo, extending its gain this week to 5.1 percent as it joined a rally in commodities and emerging-market assets. In minutes from the Fed’s September meeting, U.S. policy makers noted that domestic economic conditions had continued to improve, though concern over China and its potential spillover to other economies were likely to depress U.S. net exports. That’s prompting traders to bet the Fed won’t raise rates until next year.

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