Brazil Real Drops as Corruption Probe Outweighs Rising Oil Price

Brazil’s real declined as speculation that economic reforms may be harder to push through congress as a corruption investigation ensnares top politicians outweighed a rally in commodities.

The real lost 0.1 percent to 3.2478 per dollar at 4:21 p.m. in Sao Paulo after strengthening as much as 0.7 percent. In a new phase of the so-called Carwash probe, known as Lava Jato in Portuguese, Brazilian police arrested Antonio Palocci Filho, who served as finance minister and chief of staff under former Presidents Luiz Inacio Lula da Silva and Dilma Rousseff, according to newspaper O Estado de Sao Paulo. Palocci’s lawyer couldn’t immediately be reached by phone or text message for comment.

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