SAO PAULO: Brazilian stocks and currencies rose on Tuesday on hopes that lawmakers would swiftly approve a key austerity measure later in the day.
The Senate began final debate on a constitutional amendment limiting growth of public spending, a crucial step in President Michel Temer's efforts to curb public debt.
The Senate is expected to approve the spending ceiling by a wide margin, though leftist opponents of the austerity measure have sought to delay the vote as long as possible.
The real strengthened 0.7 percent, outperforming all of its Latin American peers.
The country's benchmark Bovespa stock index rose 0.9 percent, with shares of Kroton SA the biggest gainers.
Analysts with JPMorgan Securities increase their recommendation on the stock to "overweight," saying a 24 percent underperformance versus the benchmark index over the past six months might be overdone.
Other Latin American markets were steady as traders remained cautious ahead of the US Federal Reserve policy decision due on Wednesday.
The Fed is widely expected to raise interest rates and many traders said the hike is fully priced in, but there are doubts over whether it will send a strong signal that additional increases are to come.
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