Brazil Real’s Volatility Falls to One-Year Low on Temer Optimism
- Central bank intervention seen reducing currency swings
- Swap rates drop as policy makers forecast to keep Selic steady
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Volatility in Brazil’s real dropped to the lowest level in a year amid increased speculation that a new government will pull the nation from its deepest recession in a century while the central bank acts to limit gains in the world’s best-performing currency.
Three-month implied volatility on the real declined 0.2 percentage point to 16.75 percent on Wednesday, reaching the lowest level since July 22, 2015. The currency advanced 0.3 percent to 3.26 per dollar.