--Fiscal Target Remains Achievable With Line Item Veto
--Impeachment of President Rousseff Unlikely
SAO PAULO (MNI) - Brazil's markets, in a downdraft for months, have
accelerated their fall. The real is down over 8% against the dollar since the
start of March, capping a fall of over 35% since the start of September.
Brazil's fundamentals have weakened. The latest consensus forecast, as
measured by the central bank's "Focus" survey of local financial institutions,
is that inflation will be 7.8% this year, GDP will contract 0.7%, and the
current account deficit will hit $80 billion.
But political risk also has started to frighten traders.