The Brazilian real slumped to its lowest value in roughly four months against the world's reserve currency on Thursday, according to Bloomberg.
The real's losses were prompted by the Bank of Brazil reducing support for its currency, causing the real to register the largest losses of 24 developing-nation economies tracked by Bloomberg. The Wall Street Journal reports the South American nation is preparing to release economic data about trade and commerce later Thursday morning, which one Brazilian bank anticipates will show an increased surplus.
"For 2014, we forecast the surplus improving to $7.0 billion, because of moderate domestic economic growth, stronger growth abroad, the weaker local currency and a stronger oil balance," states a Thursday report authored by Itau economists, according to The Wall Street Journal.
The real fell roughly 1.9 percent against the greenback during the Thursday trade session.
The currency also was impacted by expectations of reduced U.S. stimulus by the U.S. Federal Reserve, according to The Wall Street Journal. The Fed resolved last month to cut asset purchases by $10 billion to $75 billion.
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