Brazil’s real fell, extending a weekly drop, as political concerns dimmed expectations that a new economic team named by Acting President Michel Temer will be able to quickly revive Latin America’s biggest economy.
The real fell 0.9 percent to 3.6159 per U.S. dollar as of 11:58 a.m. in Sao Paulo. It has weakened 2.6 percent this week, the worst performance among major currencies.
Concerns among investors increased as recordings released by newspapers suggested that acting President Michel Temer’s PMDB party sought to impede the sweeping corruption investigation known as Carwash that started at the state-run oil producer Petroleo Brasileiro SA and undermined support for suspended President Dilma Rousseff. A weaker government makes it more difficult to rally the congressional support needed to pass measures to stabilize the economy, analysts say.