Brazil Real Drops Most Among Major Tenders on Congress Paralysis
- Detention of government senator delays fiscal target vote
- Currency worst-performing among major curriencies this year
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Brazil’s real dropped the most among major currencies as the arrest of a ruling-party senator this week threatened to sidetrack President Dilma Rousseff’s economic agenda.
The arrest of the government’s leader in the Senate, Delcidio Amaral, has delayed voting on a new fiscal target that would allow the government to end 2015 with a deficit of 119 billion reais ($31.7 billion) before interest payments. If Congress doesn’t pass the measure, the government risks breaching budget rules. That could spark a new round of requests to impeach Rousseff.