Brazil’s real snapped four days of advances as investors awaited the U.S. Federal Reserve’s decision on whether to curtail a stimulus program that has bolstered emerging-market assets.
The currency was little changed at 2.3202 per dollar at 9:33 a.m. in Sao Paulo. Swap rates on contracts maturing in January 2017 fell four basis points, or 0.04 percentage point, to 11.95 percent.
The real has fallen 4.5 percent this quarter on concern Brazil’s fiscal deterioration will lead to a reduced credit rating and amid speculation the Fed may start tapering its $85 billion monthly bond-buying program as soon as today. The drop in the currency is the biggest among 16 major dollar counterparts tracked by Bloomberg after the Japanese yen.
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