Brazil’s Real slides, as global markets sink
Brazil’s currency, the real BRBY, lost 2.44-percent to 1.71 per greenback as the US dollar strengthened. This is lowest point since April as markets sank across the globe.
Analysts said the global drop in equities – led by a Dow that fell more than 344 points – sparked the losses for the Brazilian currency.
“There isn’t one factor only, it’s as if everyone in the market arrived at the same conclusion at the same time. It finally sank in that the slowdown is really coming,” Marcelo Voss, chief economist at the Liquidez brokerage told the press. “There is a general aversion to risk.”
European Central Bank President Jean-Claude Trichet said on Thursday that data pointed to weakening growth. Concerns of a slowdown in Europe added to fears of a weak labor market in the United States and pushed equity markets lower from New York to London.
The Brazil currency’s decline tracked a 4 percent tumble in the Bovespa index . BVSP of the Sao Paulo stock exchange.