Economy

Brazil’s Real Drops After Rousseff Keeps Lead in Election Poll

Brazil’s real dropped for the third time in four sessions after President Dilma Rousseff held her lead in an election poll.

Bloomberg News
20/06/2014 19:55
Visualizações: 1483 (0) (0) (0) (0)

Brazil’s real dropped for the third time in four sessions after President Dilma Rousseff held her lead in an election poll.

 

The real lost 0.4 percent to 2.2370 per dollar at 1:11 p.m. in Sao Paulo as most major currencies fell against the greenback. Swap rates on contracts maturing in January 2021 rose four basis points, or 0.04 percentage point, to 11.92 percent. The Ibovespa stock benchmark dropped the most in three weeks as state-run companies slumped.

 

“The voting simulations probably disappointed those who were hoping for the opposition to gain more ground,” Vladimir Caramaschi, the chief strategist at Credit Agricole in Sao Paulo, said in a phone interview. “It’s felt more in the stock market, but it could impact the currency a bit.”

 

Support for Rousseff’s re-election bid ahead of the Oct. 5 vote was 39 percent in the Ibope poll published yesterday, up from 38 percent previously. The real has posted the second-biggest gain among major currencies this year as surveys in late March started showing Rousseff losing popularity. That stoked speculation a new government might be better at fueling growth in Latin America’s largest economy.

 

Support for Aecio Neves, Rousseff’s main opponent, slipped one percentage point to 21 percent. The poll of 2,002 people from June 13 to June 15 was commissioned by the National Industry Confederation and had a margin of error of 2 percentage points.

 

Brazilian markets were closed for a holiday yesterday.

 

Investors are also watching closely the central bank’s intervention on the currency market, Caramaschi said. Brazil sold $198.6 million of foreign-exchange swaps today and rolled over contracts worth $494.6 million to support the real and limit import-price increases.

 

The central bank announced June 6 that it was extending its intervention, which had been scheduled to end this month.

 

Most Read Today
see see
ROG.e 2026
Camorim invests R$ 250 million in 2026 to expand fleet a...
18/09/26
ROG.e 2026
Firjan SENAI SESI Presents New Technologies at ROG.e Dev...
18/09/26
ADIPEC 2026
ADIPEC 2026 to mobilise investment in resilient, intelli...
18/09/26
Acquisition
CoreMarine takes a decisive step to expand its offshore ...
17/09/26
ROG.e 2026
M&O and Belga Marine to Showcase Global Energy and Offsh...
17/09/26
26th WPC
WPC ENERGY announces the theme, date and location for it...
16/09/26
New Contracts
Petrobras awards Strohm a contract to supply thermoplast...
15/09/26
ROG.e 2026
Equinor Celebrates 25 Years in Brazil and Showcases Its ...
15/09/26
ROG.e 2026
Sindicom to Host Lubricants Arena at ROG.e 2026
15/09/26
ROG.e 2026
ROG.e 2026 Expected to Generate R$ 593 Million for Rio d...
14/09/26
ABPIP
Independent Producers Propose Nine Measures for the Next...
14/09/26
Products and Services
RiverTough Bearings and Seals
05/09/26
International Company News
OES Group Returns to Private Ownership Following Managem...
31/08/26
Pre-Salt
Petrobras platforms P-80 and P-82, which will operate in...
31/08/26
Royalties
Values related to June production were distributed to st...
27/08/26
People
bp appoints Felipe Arbelaez head of country for Brazil
27/08/26
ROG.e 2026
ROG.e 2026 brings global leaders together to discuss the...
26/08/26
Pre-Salt
Búzios field sets monthly and daily natural gas export r...
26/08/26
Navalshore
Firjan SENAI presents the Supplier Opportunities Network...
17/08/26
Equatorial Margin
Morpho Well: Petrobras discovers hydrocarbons in ultra-d...
15/08/26
Power Generation
Campo Grande hosts four days of debates on bioenergy and...
12/08/26
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.