The real’s swings between losses and gains was the highest among major currencies as concern Brazil faces a downgrade to junk offset speculation that the central bank will increase borrowing costs by another half-percentage point.
The increase in volatility this month added to the risk for investors wanting to take advantage of the highest interest rates among major economies as Standard & Poor’s changed its outlook on Brazil to negative. Investors were also waiting to see if the U.S. Federal Reserve signals Wednesday that it will tighten monetary policy by its September meeting.
Brazil Energy Insight 
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