Brazil Real, Stocks Sink on Speculation Lula to Become Minister
- Folha reports Rousseff just waiting on Lula to accept post
- Currency slumps most two months as stocks extend decline
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Brazil’s real dropped the most in two months and stocks retreated after a report that former President Luiz Inacio Lula da Silva might be named a cabinet minister, potentially shielding him from prosecution amid the nation’s largest corruption scandal.
The Ibovespa stock benchmark declined from a seven-month high and the real dropped the most since Dec. 30 after Folha de S.Paulo reported that President Dilma Rousseff is only waiting for Lula to accept the job before making the announcement. The newspaper didn’t say where it got the information. Lula’s foundation declined to comment on the report when contacted by Bloomberg News.