Brazil’s Real Declines as Poll Shows Rousseff Would Win Runoff

[Judi Lynn]

Brazil’s Real Declines as Poll Shows Rousseff Would Win Runoff
By Filipe Pacheco Jul 23, 2014 10:22 AM CT

Brazil’s real dropped for the first time in four days as a poll indicated that President Dilma Rousseff would win in an election runoff even as Latin America’s biggest economy stalls.

The real fell 0.3 percent to 2.2204 per dollar at 12:11 p.m. in Sao Paulo. Swap rates, a gauge of expectations for interest-rate moves, rose three basis points, or 0.03 percentage point, to 11.08 percent on the contract due in January 2017.

“There is always a negative reaction for the real when polls show Rousseff has a chance of being re-elected,” Reginaldo Galhardo, a foreign-exchange manager at Treviso Corretora de Cambio in Sao Paulo, said in a phone interview.

The real pared its rally this year to 6.5 percent, remaining the biggest among 24 emerging-market currencies. It declined today as a July 18-21 poll from Ibope indicated that backing for Rousseff for the October election slipped to 38 percent from 39 percent last month, still higher than the 22 percent support for Senator Aecio Neves. The survey has a margin of error of plus or minus 2 percentage points.

More:
http://www.bloomberg.com/news/2014-07-23/brazil-s-real-declines-as-poll-shows-rousseff-would-win-run-off.html

[DonCoquixote]

1. what happened was

Dilma and her mentor Lula thought the Olympics and the WC would put Brazil on the map, but all it did was anger the very classes that put them in power, the working class that expoected Bolvarian reforms instead of billion dollar stadiums. It sure did not hurt that Germany crushed their futbol dreams.