Brazil Real Plunges as Minimum-Wage Hike Worsens Fiscal Outlook
- Currency was worst performer among major currencies this year
- One-month implied volatility was the highest of 16 currencies
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Brazil’s real added to a fifth annual drop as oil prices tumbled and an increase in the minimum wage fueled concern that the country’s fiscal situation will worsen.
The currency fell 2.4 percent to 3.9578 per dollar Wednesday in Sao Paulo. The real is the worst performer among 16 major currencies in 2015, with a 33 percent decline. One-month implied volatility rose to 23.4 percent, the highest among the group.