Brazil’s real declined to the lowest level this month amid renewed speculation Finance Minister Joaquim Levy may leave his post, while increased bets that the Federal Reserve will raise rates in December is hurting demand for emerging-market assets.
The real dropped 0.5 percent to 3.8181 percent at 9:38 a.m. in Sao Paulo, the weakest since Oct. 30 on a closing basis. Swap rates on the contract maturing in January 2017, a gauge of expectations on Brazil’s interest-rate moves, advanced 0.07 percentage point to 15.52 percent.
Valor Economico newspaper said Tuesday the government and Workers’ Party may replace Levy in January, without saying how it got the information. The real has tumbled 30 percent this year, the most among major currencies, as Levy’s attempts to shore up government finances have faced opposition by member’s of President Dilma Rousseff’s party and by lawmakers in Congress.
Brazil Energy Insight 
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