Real drops

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

The real fell 0.2 percent to 2.2173 per U.S. dollar at 9:52 a.m. in Sao Paulo. Swap rates, a gauge of expectations for interest-rate moves, decreased one basis point, or 0.01 percentage point, to 11.04 percent on the contract maturing 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, 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.

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