Brazil’s real rose ahead of a planned vote in congress on the country’s fiscal target and as the central bank stepped up support for the currency.
The real climbed 0.7 percent to 3.7052 per U.S. dollar at 1:20 p.m. in Sao Paulo. The government is working to gather support among lawmakers to guarantee approval of a change to this year’s fiscal target and next year’s budget guidelines ahead of a vote that could happen as early as Tuesday, Valor Economico reported. The chances of approval have improved, the newspaper said.
“Consensus among the Brazilian government and lawmakers should be supportive for the currency as long as there is no deterioration on the fiscal accounts,” said Georgette Boele, an Amsterdam-based strategist at ABN Amro Bank NV.
Brazil’s central bank also added support for the real and announced it will hold two extraordinary auctions totaling as much as $500 million in foreign-exchange credit lines to boost dollar liquidity. That’s in addition to its regular daily auctions of foreign-exchange swaps.
Brazil Energy Insight 
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