Brazilian Real Drops After U.S. Reports

After a report in the U.S. indicating that services industries contracted at a faster pace last month, the Brazilian currency witnessed its first decline in over a week, as concerns regarding the global economy affect emergent markets currencies.

The Brazilian real posted its first losses in a week, after being the best performing currency among the 16 most traded in foreign-exchange markets. In the United States, further job cuts and a shrinking services industry brought back uncertainties about the global economic recovery, halting the real’s strong rally after a week of gains versus the greenback.

USD/BRL traded at 1.8284 as of 18:36 GMT after being traded at 1.8250 in the intraday comparison.

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