EMERGING MARKETS-Ukraine currency hits record low, Brazil real snaps winning streak
By Asher Levine and Sujata Rao
SAO PAULO/LONDON Feb 26 (Reuters) - Ukraine's hryvnia currency tumbled on Wednesday to a record low, as investors were unsettled by the country's murky political and economic outlook, while Brazil's real retreated after a five-day rally.
Ukraine remains without a settled government several days after President Viktor Yanukovich was overthrown, raising fears the country will fail to secure outside financial support in time to repay debts as its own hard currency reserves dwindle.
"The whole political picture in Ukraine has become even more blurred than before," said Simon Quijano-Evans, head of emerging markets research at Commerzbank in London.
"As long as there is no clear resolution on who is in charge and as long as there is no unity among global policymakers on resolving the issues, it is impossible to say what happens to asset prices."
Ukraine's foreign currency reserves have dropped to $15 billion from $17.8 billion on Feb. 1, central bank chief Stepan Kubiv said on Wednesday.
The country has asked the International Monetary Fund to help prepare a new financial aid program, Kubiv said, adding that the new government would soon have its own anti-crisis program ready..
Investors remained shaken, driving the hryvnia down around 4 percent to 10 per dollar, while five-year credit default swaps jumped 76 basis points, Markit data showed. Continuación...