Brazil’s real gained amid speculation that support for a change in government is growing amid the deepest recession in a century for Latin America’s largest economy.
The real rose 1.3 percent to 3.8439 per dollar at 10 a.m. in Sao Paulo after a news report that testimony by Senator Delcidio Amaral, who was the government’s chief negotiator in the Senate when he was arrested in November, will appear in this week’s IstoE magazine. His attorney has denied he reached a plea bargain to testify.
Currency traders are betting Amaral will allege further wrongdoing by the ruling Workers’ Party, which will add support to efforts to impeach President Dilma Rousseff. While markets have been split in the past about whether a Rousseff ouster would be good or bad, many now say it may be the only way out of a months-long political quagmire that is preventing lawmakers from focusing on kick-starting the economy and closing a crippling budget hole.
Brazil Energy Insight 
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