Brazil Real Declines as Volatility Highest in Emerging Markets
- Lower house leader remains at odds with President Rousseff
- Government said close to announcing 50 billion-real deficit
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Brazil’s real dropped as concern over the outlook for Latin America’s largest economy amid a political strife outweighed optimism that Finance Minister Joaquim Levy will stay in his post.
The real declined 0.5 percent to 3.9053 per dollar, after earlier rising as much as 1 percent. The currency is down 32 percent this year, the most among developing nations, on concern the government will struggle to ward off credit-rating cuts as the country heads into its longest recession since the 1930s. One-month implied volatility was 25.4 percent, the highest in emerging markets Tuesday.