The US dollar closed at R$4.10. The market is trying to verify if the Brazilian Central Bank will really intervene by selling international reserves. Furthermore, fears that another rating agency might downgrade the sovereign credit standing returned along with the lack of credibility that congress will pass the fiscal package necessary to shore up the... Continue Reading →
Fitch on Brazil: 2-notch rating downgrade not usual
Fitch on Brazil: 2-notch rating downgrade not usual SAO PAULO, SEPT 28\2015 Reuters A Fitch Ratings director on Monday practically ruled out the possibility of Brazil losing its investment grade during its next rating revision by saying the ratings agency "does not usually" give two-notch downgrades, barring exceptional cases. Rafael Guedes, Fitch's managing director for... Continue Reading →
Brazil Real Drops as China Manufacturing Slump Adds to Pessimism
The real depreciated 0.6 percent to 3.9999 per dollar at 9:24 a.m. in Sao Paulo. Swap rates on the contract maturing in January 2017, a gauge of expectations on interest-rate moves, rose 0.14 percentage point to 15.73 percent. Brazilian policy makers stepped up support for the real last week after the currency reached record lows.... Continue Reading →
Brazil Analysts Increase 2016 Inflation Outlook on Weaker Real
Brazil analysts raised their estimate for inflation next year for the eighth straight week on expectations of a weaker real in 2015. Inflation next year will reach 5.87 percent, up from the previous estimate of 5.7 percent, according to the Sept. 25 central bank survey of about 100 analysts. The analysts predicted that the benchmark... Continue Reading →
Brazil Real Advances as Volatility Climbs to Highest Since 2011
Brazil’s real headed for a second straight gain, bolstered by policy makers’ signals they could boost support for the currency, after a tumultuous week of trading sent volatility to the highest level in almost four years. The currency added 0.4 percent to 3.9335 per dollar as of 9:47 a.m. in Sao Paulo, leaving it up... Continue Reading →
Brazil Respite Seen Short Lived With Momentum Going Against Real
Note: the Real opened stronger this Friday testing the R$3.90 level for the US dollar. Alexandre Tombini’s pledge to use all the tools he has to tame volatility in Brazil’s real provided a respite Thursday for thebeleaguered currency. Strategists at Citigroup Inc. and Standard Chartered Plc say it won’t be enough to calm markets. The... Continue Reading →
Brazil Impeachment Battle Heats Up Before Rousseff Flies to U.S.
The debate over President Dilma Rousseff’s political survival intensified as lawmakers for the second time this month debated impeachment, clashing over the rules of a process that hasn’t been carried out in Brazil since 1992. Lawmakers disagreed Thursday whether Rousseff can be impeached for misdeeds allegedly carried out in her previous term. Lower house President... Continue Reading →
Cunha Says Misdeed in Prior Term May Justify Brazil Impeachment
Brazil’s lower house leader Eduardo Cunha gave opponents of President Dilma Rousseff hope by saying in a report he may be able to accept an impeachment request that is based on misdeeds committed in a prior presidential term. Opposition leaders have filed a request with Cunha to impeach Rousseff based on charges she doctored fiscal accounts,... Continue Reading →
Brazil Supreme Court votes to spin off part of corruption probe
Brazil's Supreme Court voted on Wednesday to move part of the country's largest-ever corruption probe to another judge, challenging the notion that all pieces of a case that initially focused on state-run oil firm Petrobras are legally linked. Justice Dias Toffoli argued that an investigation into whether President Dilma Rousseff's former chief of staff Gleisi... Continue Reading →
UPDATE 1-Brazil’s Congress upholds vetoes limiting fiscal deterioration
(Reuters) - Brazil's Congress early on Wednesday upheld key presidential vetoes to avert a surge in public expenditure and postponed a decision on a possible salary increase for judiciary employees, in a rare victory for an embattled government struggling to rebalance its fiscal accounts. Lawmakers decided to uphold President Dilma Rousseff's veto of a bill... Continue Reading →
Brazil Energy Insight 