Brazil’s real rallied after the government suffered a setback in Congress that fueled speculation there may be more support to oust President Dilma Rousseff than previously expected. The real gained 0.8 percent to 3.7673 per dollar as of 10:13 a.m. in Sao Paulo. One-month implied volatility fell to 20.14 percent, still the highest among 16 major currencies tracked by Bloomberg.
The lower house, in a secret vote Tuesday night, created a committee to evaluate the request to oust Rousseff and recommend whether hearings against her should begin. It was seen as a defeat for the president, who has sought to win over enough lawmakers to stop the proceedings. While investors in the past have been split about whether impeachment would be positive for Brazil, many now say it may be the only way to resolve a months-long political stalemate that has prevented lawmakers from focusing on shoring up the budget and kickstarting economic growth.
Brazil Energy Insight 
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