Brazil's Real Falls Second Day as Industrial Output Drop Signals Rate Cut

(Bloomberg) -- The real fell for a second day after
the government reported industrial output declined in April,
bolstering speculation that the central bank will cut its key
lending rate tomorrow.

The currency also declined as yields on the benchmark U.S.
10-year Treasury note touched a nine-month high of 4.96 percent,
reducing the appeal of riskier real-denominated assets. Brazil's
benchmark interest rate is at 12.5 percent, compared with
Federal Reserve's key borrowing cost of 5.25 percent.


Read more at Bloomberg Currencies News