Brazil’s real led world gains, countering a slide in emerging-market currencies, as dollar inflows from local exporters overshadowed signs of a slowdown in the nation’s top trading partner.
The real added 1.4 percent to 3.8883 per dollar at 1:26 p.m. in Sao Paulo, the most among 16 major currencies tracked by Bloomberg. It had dropped as much as 0.5 percent as a decline in Chinese industrial company profits spurred a selloff in developing-country assets.
“Trading volume is considerably low, so any move tends to have a more significant impact on the real,” said Ricardo Gomes da Silva, a foreign-exchange director at Correparti Corretora de Cambio in Curitiba, Brazil. “Still, the focus remains on Brazil’s fiscal front.”
The Brazilian currency has tumbled 32 percent this year as President Dilma Rousseff’s administration struggles to shore up the nation’s finances and avoid further credit downgrades while Latin America’s largest economy heads toward the longest recession since the 1930s. Newly appointed Finance Minister Nelson Barbosa told reporters last week that the government has no plans to relax next year’s fiscal target, without specifying how his team will achieve its goals if lawmakers block government legislation to raise taxes.
Brazil Energy Insight 
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