| The Brazilian real moved sharply lower Friday after a gross domestic product report showed Brazil’s economy contracted in the fourth quarter compared with the same period a year earlier. The real traded at 3.23 to the U.S. dollar, compared with 3.19 Thursday.
The plight of the real, which has lost 18% of its value against the dollar since the beginning of the year, shows how important policy makers’ credibility can be to sustaining foreign investment and economic growth in an emerging market. A recent scandal involving kickbacks at its state-controlled energy company Petrobras, hasn’t helped restore investors’ faith in its economy...............................................Full Article: Source
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