The cost of buying options to protect against swings in Brazil’s real is close to its lowest level in a year as the central bank unwinds its swaps program, which had helped investors hedge their exposure to a weakening currency.
Three-month implied volatility was little changed Wednesday at 17.51 percent after falling to the lowest level since July 30, 2015, on Tuesday. The real advanced less than 0.3 percent to 3.2875 per dollar at 10:26 a.m. in Sao Paulo.
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