Brazil’s Real wanes as UK’s exit dims appetite for risk

Bloomberg

The real joined a selloff in emerging markets as the U.K.’s vote to leave the European Union spurred concern the global economy will weaken at a time when Brazil is already facing its worst contraction in a century. The currency dropped 0.5 percent to 3.3928 per dollar, briefly extending losses after the U.K. was downgraded by S&P Global Ratings. A gauge of emerging-market currencies declined 0.8 percent as the aftershocks of the Brexit decision reverberated across financial markets after a weekend of political turmoil. The pound extended its record selloff and European equities dropped to levels last seen in February.
Brazilian officials sought to reassure investors that Latin America’s economy would withstand the turmoil, with Foreign Minister Jose Serra writing in a guest column in Folha de S. Paulo newspaper that the economic impact would be minimal.