Brazil's current account deficit narrowed in September from the previous month as the foreign trade surplus firmed, but the improvement was more modest than economists expected.
Brazil posted a current account deficit of $2.629 billion in September, central bank data showed on Friday.
The country had been expected to post a deficit of $1.8 billion, according to the median forecast of 22 analysts in a Reuters poll. Brazil's current account deficit in August was $5.505 billion.
A widening deficit contributed to a sharp depreciation of Brazil's currency between May and August, when global risk aversion spiked on prospects of a change in U.S. monetary policy.
Brazil, a major producer of meat, soy and iron ore, posted a stronger-than-expected trade surplus of $2.15 billion in September. Brazil has seen its exports shrink on tepid demand abroad and a drop in the value of commodities, while imports have remained robust.
In the 12 months through September, the current account deficit was equivalent to 3.6 percent of gross domestic product, unchanged from August.
The country also had a current account deficit of $2.6 billion in September of 2012.
Foreign direct investment in Latin America's largest economy was $4.770 billion in September, in line with market expectations of $4.8 billion.
Source: Reuters
