Brazil’s Real Tumbles on Bolsonaro’s Plan to Cut Fuel Prices (2)

President Jair Bolsonaro’s plan to lower fuel prices increased investor concern about government finances in the run-up to October’s presidential election, sending the real tumbling and swap rates jumping.

Bolsonaro, who’s trailing ex-president Luiz Inacio Lula da Silva four months ahead of the vote, announced late on Monday that his government will scrap all federal taxes on gasoline and ethanol until the end of the year and invited states to do the same for diesel and natural gas, saying the Treasury would make up for their loss of revenue. The measures require the approval of two constitutional amendments expected ...