Paula Sambo and Filipe Pacheco – Bloomberg Business, 7/08/2015
The real led losses among major currencies as China’s equity meltdown triggered a plunge in the price of Brazil’s iron-ore exports.
A drop in the shares of Rio de Janeiro-based Vale SA, the world’s biggest miner of the raw material, added to concern that international investors are withdrawing funds from Brazil. Iron ore sank Wednesday to the lowest level in at least six years as China’s stock decline threatened demand just as the largest producers including Vale raised output.
“Plummeting iron-ore prices put pressure on the real,” Kenneth Lam, a Citigroup Inc. strategist in New York, wrote in a research report to clients.