Brazilian Real Drops vs. Euro on Concern for Global Recovery

The Brazilian real declined today versus the euro after the U.S. retail sales fell more than forecast, spurring the concerns for the sustainability of the global economic recovery.

The retail sales in the U.S. declined 0.5 percent in June, compared to the median forecast of 0.2 percent decrease. The Standard & Poor’s 500 Index went down 0.2 percent. The fears that the global recovery may slow caused the investors to shun the higher-yielding currencies.

EUR/BRL traded at 2.2604 as of 10:47 GMT today after it opened at 2.2455. USD/BRL went down to about 1.7600 from its opening level of 1.7630.

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