SAO PAULO, July 28 (Reuters) - The Brazilian real weakened sharply on Tuesday, trading at 3.4 per dollar for the first time in over 12 years, on fears that Brazil is poised to lose its investment-grade rating as economic growth disappoints.
The real has tumbled nearly 7 percent since the government slashed its fiscal savings goals last week. The decision was taken because tax revenues plunged as a result of a sharp economic recession, government officials said.
Fears of an upcoming interest rate hike by the U.S. Federal Reserve also weighed on the real.
Reporting by Walter Brandimarte; Editing by Chizu Nomiyama