Brazil’s real fluctuated amid speculation President Dilma Rousseff will fail to gather congressional support to approve the country’s fiscal target, which is key to avoiding a forced government spending shutdown.
The government is trying to change this year’s fiscal target, allowing it to end the year with a primary deficit of 119 billion reais ($31 billion). The vote could happen as early as Wednesday. If the change isn’t approved, Rousseff will face a tough choice: either breach budget laws, which could be grounds for a new impeachment request, or freeze spending. Planning Minister Nelson Barbosa said failure to pass the measure would paralyze the government, newspaper Folha de S. Paulo reported.
The real rose 0.2 percent to 3.8455 per dollar at 3:49 p.m. in Sao Paulo, after dropping as much as 0.6 percent.
Brazil Energy Insight 
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