Reported 12 days ago
Brazil's Congress has diluted President Luiz Inacio Lula da Silva's austerity plan as the real hits an all-time low, raising concerns over the escalating fiscal deficit. Lawmakers voted to eliminate a vehicle tax and restrict government spending, seeking to protect votes on other parts of the fiscal package aimed at reducing annual spending by 70 billion reais. The real has underperformed significantly against the dollar this year, prompting concerns of a speculative attack amid the government's struggle to stabilize public finance.
Source: YAHOO