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Real Volatility Continues Amid Impeachment Speculation

As Brazil's political turmoil continues, volatility in the Brazilian real is the highest among 16 major currencies.

By Paula Sambo and Filipe Pacheco, Bloomberg | Updated on April 01, 2016

The cost of buying options to protect against swings in Brazil’s real rose to the highest in two weeks as investors gauge whether lawmakers will vote to impeach President Dilma Rousseff.

The increase in volatility reflects the guesswork traders are undertaking as they try to divine the chances that Rousseff will be ousted, potentially clearing the way for a new government that would be better positioneAs d to pull the country out of its worst recession in a century. The real’s 12 percent gain this year is the biggest among 150 currencies worldwide, bolstered by speculation that Rousseff will lose her battle to stay in office.

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