Brazil’s real fell to a fresh 12-year low and led losses among major currencies as a projected deficit in 2016 added to speculation that the nation will slip to a junk credit rating.
The real depreciated 1.8 percent to 3.6875 per dollar at 3:36 p.m. in Sao Paulo, the weakest level on a closing basis since December 2002. The drop was the biggest among 16 major currencies tracked by Bloomberg. One-month implied volatility on options for the real, reflecting projected shifts in the exchange rate, increased to 21 percent, the highest since April 1.
Brazil Energy Insight 
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