Brazil Real Falls First Time in Four Days on U.S. Income Data

 Brazil’s real fell for the first time in four days after a report showed U.S. personal income rose less than forecast, dimming the economic recovery outlook and spurring investors to sell higher-yielding, emerging-market assets.

The real dropped 0.2 percent to 1.7541 per dollar at 9:04 a.m. New York time, from 1.7501 on Aug. 27. The currency has strengthened 0.1 percent this month.

U.S. incomes climbed 0.2 percent in July, after being unchanged the previous month, Commerce Department figures showed today in Washington. It compared with a rise of 0.3 percent that was the median forecast of economists surveyed by Bloomberg. The U.S. is Brazil’s second-largest trading partner.

The yield on Brazil’s interest-rate futures contract due in January 2012 climbed one basis point, or 0.01 percentage point, to 11.41 percent.

Brazil’s policy makers will keep benchmark borrowing costs unchanged at 10.75 percent at a two-day meeting starting tomorrow, according to the median forecast of 37 economists surveyed by Bloomberg News. Central bank President Henrique Meirelles said in a speech on Aug. 16 that inflation expectations for next year are “around” the central bank’s 4.5 percent target.