Brazil's Real touched a record low on Wednesday as traders returned from the Carnival holiday only to be alarmed by concerns about the spread of the new coronavirus after Sao Paulo confirmed its first case. The Real weakened 1.1% to 4.4470 against the dollar, as it led declines among other Latin American currencies.
Most Latin American stocks rose on Friday after U.S. economic data pointed to the possibility that the Federal Reserve could keep interest rates unchanged. Shares extended their rally after U.S. employment and manufacturing data underscored a strong economy with little wage inflation.
Brazilian markets surged on Tuesday as stronger polling for far-right presidential candidate Jair Bolsonaro and a Congressional farm caucus endorsement boosted expectations that he may block the leftist Workers Party from returning to power.
Brazilian equities and currencies slumped on Tuesday after an opinion poll on the presidential election showed leftist candidates gaining ground while market-friendly centrists did not.
In Brazil, the Real currency and benchmark Bovespa stock index strengthened slightly on Wednesday. Political uncertainty in Brazil took a toll after judicial authorities canceled the release of a closely-watched opinion poll on technical grounds.