Brazil's Real Falls on Heightened Risk Aversion, Chinese Rate Boost Worry

(Bloomberg) -- Brazil's currency fell after U.S.
hedge fund losses last week heightened sensitivity to riskier,
emerging market assets. Speculation that China may raise
interest rates also prompted investors to reduce positions in
local markets.

``The scenario is quite cloudy now, with the troubles with
hedge funds in the U.S. and now the prospect of higher rates in
China and other places,'' said Silvio Campos Neto, an economist
at Banco Schahin in Sao Paulo.


Read more at Bloomberg Currencies News