Brazil’s real swung between gains and losses in early trading Tuesday as optimism that some government spending cuts will be upheld offset concern impeachment proceedings against President Dilma Rousseff are drawing closer.
The real was little changed at 3.9116 per dollar at 9:54 a.m. in Sao Paulo, after earlier falling as much as 1.1 percent and gaining 0.3 percent. The real is down 32 percent this year, the most among developing nations, amid concern the government will struggle ward off credit-rating cuts as the country heads into its longest recession since the 1930s.
Lower house president Eduardo Cunha said on Monday that lawmakers will probably uphold Rousseff’s vetoes of spending bills that she says would have increased the budget deficit in a session that’s set to start at 11:30 a.m in Brasilia. Weighing on the real is concern over an audit court ruling expected this week on alleged irregularities in Rousseff’s campaign financing and the government’s 2014 budget, which could be grounds for impeachment.
Brazil Energy Insight 
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