The Brazilian real fell to an all-time low above four real to the dollar Tuesday as the U.S. currency broadly strengthened against its emerging-market rivals. The real was recently down 1.4% on the day to 4.04 to the dollar, compared with 3.99 late Monday in New York. The real has shed about 34% of its value against the dollar since the beginning of the year, placing it among the worst-performing emerging-market currencies. Brazil’s economy has suffered from a crisis of confidence in the administration of President Dilma Rousseff following a corruption scandal at state-owned energy firm Petrobras. Rousseff has been unable to pass budget cuts through an unsympathetic legislature, stirring concerns about the country’s creditworthiness among foreign investors. “While we do not expect the real to continue to tumble, we think there is little scope for a significant rebound,” Economists from Capital Economics said in a note to clients.
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