Brazil’s real advanced the most among major currencies, rebounding from the world’s biggest loss Wednesday, as a court ruling put President Dilma Rousseff a step closer to facing impeachment over the way the government accounted for its finances last year.
The real advanced 1.5 percent to 3.8292 per dollar, its strongest level in more than three weeks, as of 1:09 p.m. in Sao Paulo. Three-month implied volatility on options for the real, reflecting projected shifts in the exchange rate, increased to 23 percent.
An audit court recommended late Wednesday that Congress reject government accounting practices for the first time since 1937 in a decision that could be used as legal justification to impeach Rousseff and usher in a new administration. Her opponents say the government used fiscal maneuvers last year that broke the law in order to hide a budget deficit. Rousseff’s legal team denies the accusations.
Brazil Energy Insight 
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