Paulo Sambo – Bloomberg, 03/28/2016
Brazil’s real advanced amid increasing speculation that an impeachment of President Dilma Rousseff is getting closer as her political allies fall away.
Traders pushed up the value of the Brazilian currency amid reports that the biggest party in Congress may leave the governing coalition as soon as Tuesday. The PMDB’s decision to split with the government may prompt other parties to follow, further reducing the government’s support. The real added 1 percent to 3.6427 per dollar at 9:59 a.m. in Sao Paulo The currency has gained 8.7 percent this year, the most among its most-traded counterparts.
“The prospect of PMDB and other parties splitting with the government is boosting Brazilian assets today,” said Eduardo Longo, who helps manage 23 billion reais as a fixed-income portfolio manager at Quantitas, in Porto Alegre, Brazil.