(Yahoo Finance) Brazil's real and stocks rose on Wednesday due to government efforts to overhaul pension reform, while dovish remarks by U.S. Federal Reserve chief sparked a rally in riskier assets.
The comments reinforced expectations of an interest rate cut from the Fed for the first time in a decade at its monetary policy meeting later this month. Prospects of major central banks embracing looser monetary policy to counter a global growth slowdown has supported emerging markets this year. “There is now economic evidence that the outlook for the U.S. economy is not that great. Ultimately what that means is that the Federal Reserve will need to intervene, and they’re sounding dovish right now,” said Juan Perez, senior currency trader at Tempus Inc, Washington.