Brazil Probes Alleged Insider Trading Amid Tariff Controversy

Brazil's Supreme Court has launched an investigation into potential insider trading linked to the announcement of a 50% tariff on Brazilian imports by the U.S. Justice Alexandre de Moraes is leading the inquiry into possible misuse of foreign exchange information, according to a court filing on Monday.

The solicitor general's office had requested permission to probe these trades after a report suggested significant volumes of Brazilian reals were sold ahead of the tariff news. The report, based on a chart by Spencer T. Hakimian of Tolou Capital Management, highlighted suspicious market movements coinciding with the tariff announcement.

Alongside these developments, Brazil's attorney general is also investigating Eduardo Bolsonaro, son of former President Bolsonaro, amid allegations of seeking interference by Trump. Investigations continue amid a broader political context involving allegations against former President Jair Bolsonaro following the 2022 presidential elections.

(With inputs from agencies.)