Brazil Real Advances on Impeachment Momentum as Ibovespa Falls
- Central bank refrains from intervening to weaken real Monday
- Stocks follow oil prices lower amid global risk aversion
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Brazil’s real gained on speculation that President Dilma Rousseff will be impeached and as the central bank refrained from moving to weaken the currency. Stocks dropped as a decline in oil and iron-ore prices dimmed the outlook for Brazilian producers.
The currency strengthened 0.2 percent to 3.5582 per dollar, extending its gain this year to 11 percent, the biggest advance among its most-traded counterparts. The Ibovespa dropped for a third day, the longest losing streak in a month, led by declines in iron-ore miner Vale SA. The index is still up 34 percent in dollar terms this year, the most in the world behind Peru’s benchmark.