Brazil’s economy minister blamed the Real’s slide to an all-time low on the coronavirus outbreak and said the currency could weaken to as much as 5 per dollar if he “messes up.” Paulo Guedes said the Real is weakening largely due to the economic impact of the epidemic, rather than a change in the country’s risk perception.
Latin American stocks and currencies weakened on Thursday, with Brazil's real slipping to yet another record low, as the rapid spread of the coronavirus sapped risk appetite and investors worried about the scale of the economic fallout.
Brazil’s currency fell below 4.35 reais per dollar for the first time this week, as weaker-than-expected retail sales figures gave renewed impetus to the selling that has picked up notable momentum in recent days.
Brazil’s currency the Real hit a two-month low against the dollar on Thursday, slumping to within sight of its record low under a wave of global risk aversion on fears over the coronavirus outbreak and its diminishing yield appeal.
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.
The Brazilian Real erased early losses on Tuesday after state prosecutors charged Workers Party vice presidential candidate Fernando Haddad with corruption, driving investors to pare bets on his electoral strength.
The Brazilian Real slumped on Monday as mounting concerns over this year's presidential election added to global risk aversion, while the Argentine peso extended a recent sell-off that also spread into stock markets in Latin America.
The Brazilian currency Real fell to a 31-month low versus the U.S. dollar on Thursday on jitters ahead of the country’s October election. Jitters across emerging markets caused by a stronger U.S. dollar and exacerbated by the unfolding currency crisis in Turkey already took a toll on the Brazilian unit before this week.
The Brazilian real led losses among Latin American currencies on Monday after an opinion poll showed the market's preferred candidate in October's presidential elections lagging far behind his rivals. The Real was down 0.76% and 15.98% in the eight months of the year.
The Brazilian real climbed almost 1% against the dollar on Thursday, as a rout on Wednesday led to a technical correction and a key poll showed Brazil's left failing to gain steam in presidential elections scheduled for October.