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Bloomberg
Brazil’s real advanced on speculation that Finance Minister Henrique Meirelles will have more power over budget planning as the government seeks to control spending and restore confidence in Latin America’s largest economy.
The real trimmed its monthly decline after a government aide who asked not to be named said that the office responsible for budget planning will be incorporated into the Finance Ministry in August. The currency also joined gains in its developing-nation peers after data showing the U.S. economy grew slower than forecast gave policy makers no reason to accelerate their plans for raising rates. The Brazilian central bank refrained from selling reverse swaps to weaken the real. Brazilian assets have led world gains in 2016 on speculation that the new administration would be able to pull the economy out of its worst recession in a century and shore up the budget. Acting President Michel Temer isn’t happy with the way the budget is currently managed within the government structure, according to the aide who asked not to be named because the plans aren’t public.