Brazil Currency Bears Re-Emerge as Brexit Outweighs Temer: Chart

Brazil Is Unraveling Before Our Eyes

Foreign investors have increased their bearish bets against Brazil’s currency in the futures market to the highest level in eight weeks, according to data compiled by Bloomberg and BM&FBovespa SA. That’s a reversal from earlier this year, when short wagers declined amid speculation that a new government led by Michel Temer would revive the economy. "There’s no doubt among investors about improvements within Brazil, but in the external scenario, we are close to the Brexit vote, so foreign investors are protecting themselves," said Leonardo Monoli, a partner at Jive Asset Gestao de Recursos in Sao Paulo.

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