EMERGING MARKETS-Brazil's real plunges further on Rousseff poll numbers

jueves 6 de agosto de 2015 12:11 GYT

By Asher Levine
    SAO PAULO, Aug 6 (Reuters) - Brazil's currency fell its most
in nearly two weeks on Thursday after poll data showed President
Dilma Rousseff's approval rating continued to deteriorate,
raising fears of greater political turbulence and weaker
economic discipline ahead.
    The Brazilian real  dropped for a sixth straight
session, losing about 2 percent to trade at 3.56 per dollar, its
weakest since March 2003.
    Poll data by research firm Datafolha earlier Thursday 
showed Rousseff's approval rating at just 8 percent, with 66
percent of respondents in favor of her impeachment.
    Rousseff's popularity has been hammered by a huge corruption
scandal involving state-run oil firm Petrobras SA and
an economic downturn that is pushing the country into its worst
economic downturn in 25 years. 
    At the same time, the nation is struggling to tighten
spending and fend off a sovereign credit downgrade, with
investors closely attuned to any political turbulence that could
knock those efforts off track.
    "The market is now working under the assumption that she
will be pushed out of office in the short term," said Paulo
Petrassi, a partner with asset management firm Leme
Investimentos in Florianopolis, Brazil. 
    "The initial reaction would be bad for the real, but we will
likely see it rebound soon after, because this is the only way
we're going to get things back on track."
    Other factors weighing on the real, which has weakened over
25 percent against the dollar this year, include lower global
commodities prices and the outlook for higher interest rates in
the United States.
    Local brokerage Bradesco Corretora on Thursday revised its
year-end outlook for the real to 3.60 per dollar from a previous
estimate of 3.25.
    Meanwhile, yields on Brazilian interest rate futures
<0#DIJ:> jumped across the curve following the release of
minutes from the central bank's most recent rate-setting
    While most investors expected a clear signal that the recent
rate-hiking cycle was over, the bank left the door open to
further hikes should inflation forecasts worsen significantly.
    Currency moves were muted across the rest of Latin America,
with the Chilean and Colombian pesos  both about 0.2
percent weaker and the Mexican peso up 0.1 percent.
    Equities markets were also quiet. Brazil's Bovespa stock
index slipped 0.25 percent on a modest decline in
banking shares, while Chilean and Mexican stocks  
were little changed. 
    Key Latin American stock indexes and currencies at 1553 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets         884.8     -0.8    -6.73
 MSCI LatAm                  2214.61    -1.19   -17.83
 Brazil Bovespa           50162.0926    -0.25     0.31
 Mexico IPC                 44971.87     0.08     4.23
 Chile IPSA                  3873.25    -0.07     0.58
 Chile IGPA                 18818.92    -0.14    -0.27
 Argentina MerVal          10863.489    -0.44    26.63
 Colombia IGBC               9829.74    -0.04   -15.51
 Venezuela IBC              15345.26    -0.73   297.68
 Currencies                           daily %    YTD %
                                       change   change
 Brazil real                  3.5665    -2.19   -25.49
 Mexico peso                   16.36     0.11    -9.88
 Chile peso                    683.2    -0.14   -11.24
 Colombia peso                  2957    -0.25   -19.24
 Peru sol                     3.2051    -0.12    -7.05
 Argentina peso               9.2075    -0.03    -7.14
 Argentina peso                14.87     0.54    -5.85

 (Editing by Bernadette Baum)