Brazil Real Posts World's Biggest Drop as Budget Outlook Worsens
- BTG Pactual denies allegations it bribed lawmaker Cunha
- One-month implied volatility rises to highest since October
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Brazil’s real dropped the most among major currencies as allegations that Grupo BTG Pactual SA bribed a prominent lawmaker threatened to sidetrack President Dilma Rousseff’s economic agenda.
A note seized by the Attorney General’s office showed that Latin America’s largest independent investment bank paid 45 million reais ($11.6 million) to Eduardo Cunha, now chief of Brazil’s lower house, in exchange for amending a bill to favor the bank, Folha de S. Paulo reported Sunday. BTG and Cunha denied any wrongdoing.