Brazil Real Falls as Central Bank Report Adds to Global Sell-Off

Brazil’s real tumbled Thursday after an economic report showed the economy shrank more than forecast, magnifying the effects of a global sell-off in emerging markets.

The real was the biggest dud among Latin American peers after the central bank said economic activity, often seen as a proxy for gross domestic product, declined 4.99 percent in April from a year earlier, eclipsing the 4.6 percent drop that analysts had forecast in a Bloomberg survey. The real has posted the second-best returns among major currencies this year on speculation Acting President Michel Temer can revive Latin America’s largest economy, and the disappointing economic report underscores the need for him to act quickly.

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