Investors scared off by Brazil’s political turmoil are returning to its currency, lured by the potential for Latin America’s second-highest carry return.
The selloff in the real immediately after fresh corruption allegations were leveled at President Michel Temer last month has now subsided, with one-month price swings falling below expected volatility levels based on options prices. Traders of forward contracts have cut their bets for depreciation to a 14-month low, according to data compiled by Bloomberg.
Brazil Energy Insight 
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