Brazil's President Dilma Rousseff speaks during a national education conference, CONAE 2014, in Brasilia November 20, 2014. REUTERS/Ueslei Marcelino
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NEW YORK: Whoever is tapped by Brazilian President Dilma Rousseff to oversee the government's finances in her second term, one thing is clear: There's plenty of work to be done to win over currency investors. While the real gained the most in three weeks Nov. 21 amid optimism the looming Cabinet shuffle will help shore up Brazil's economy, foreigners are betting on more declines after the currency weakened to a nine-year low this month. A surge in government spending, coupled with Rousseff's intervention in Latin America's biggest economy, has left Brazil with its widest budget deficit in a decade and near-zero growth. The 12 percent drop since mid-year makes it the worst performer after the yen among 16 major currencies tracked by Bloomberg.Rousseff has a chance to start to win back alienated investors when she selects her next finance minister. In the run-up to her narrow re-election Oct. 26, Rousseff said she would replace Guido Mantega, the public face of government policies that produced Brazil's first recession in five years.That would make the growth record of Rousseff's first four-year term worse than that of any Brazilian president in more than two decades.
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