Brazil’s real extended its worst monthly slide since September after the resignation of a second minister in two weeks cast doubt on Acting President Michel Temer’s ability to restore confidence in Latin America’s largest economy.
The real dropped 0.6 percent to 3.5913 per dollar at 10:21 a.m. in Sao Paulo, extending this month’s decline to 4.3 percent.
Traders have piled into Brazilian assets this year on speculation that a change in the administration would be able to revive an economy facing its worst recession in a century. Temer, who is serving as Brazil’s interim president while the impeachment of Dilma Rousseff is tried in the Senate, has announced outlines of the policies he will send to Congress to help address Brazil’s budget woes and get the economy growing again. Still, the resignation of a second minister because of leaked audio threatens the stability of Temer’s administration less than a month after he took over the government.