Brazil’s real volatility climbed to a six-month high as traders weighed whether Standard & Poor’s move to cut the nation’s credit rating to junk will prompt lawmakers to work with the government to shore up the budget.
One-week implied volatility on options for the real, reflecting projected shifts in the exchange rate, increased to 26.83 percent Friday, the highest among 16 major tenders tracked by Bloomberg. The currency dropped 0.8 percent to 3.8822 per dollar at 4:09 p.m. in Sao Paulo, the lowest in almost 13 years as commodities fell. It’s down 1 percent this week.
Brazil Energy Insight 
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