Brazil’s Real Strengthens as Senate Schedules Impeachment Debate

  • Commodities reverse earlier gains, following crude oil lower
  • Senate schedules impeachment debate of suspended Rousseff

Brazil’s real rose as the Senate moved to resume impeachment proceedings that could result in the permanent ouster of Dilma Rousseff.

The real advanced 0.2 percent to 3.2591 per dollar on Tuesday, erasing earlier losses.

Brazilian assets are among the world’s best performers this year amid speculation that a new administration replacing suspended Rousseff would be able to contain a growing budget deficit and help end the country’s worst recession in a century. The real has appreciated 22 percent this year and the Ibovespa stock index is up 30 percent. Analysts surveyed by the central bank expect the economy to grow more than 1 percent next year after contracting by more than 3 percent in both this year and last.

Swap rates on the contract maturing in January 2018, a gauge of expectations for interest-rate moves, climbed 0.02 percentage point to 12.82 percent.

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