EMERGING MARKETS-Brazilian real slumps as traders boost value of dollar assets
SAO PAULO, Dec 30 (Reuters) - The Brazilian real weakened the most in more than a week on Wednesday, in a session marked by thin trading volumes and efforts by banks and brokerages to boost the value of their U.S. dollar-denominated assets, traders said. The real fell 1.8 percent to 3.9480 reais to the dollar, the third-weakest annual close since the currency was introduced in 1994. The real shed about 32.8 percent this year, making it the world's worst-performing major currency, as the government failed to assuage concerns over growing budget shortfalls and an escalating standoff with Congress. Other currencies, including the Mexican peso and the Chilean peso, also fell against the greenback. Concerns over how President Dilma Rousseff's government plans to tackle a mounting fiscal deficit and the impact of a massive debt repayment to state banks made on Wednesday also added to losses, traders noted. A decline in crude prices , which have struggled with concerns over global oversupply, weighed on demand for commodity-linked currencies amid light trading ahead of the New Year's holiday. Latin American currencies at 2230 GMT: Currencies daily % YTD % change change Latest Brazil real 3.9550 -0.20 -32.81 Mexico peso 17.3921 -0.77 -15.23 Chile peso 709.7 -0.13 -14.56 Colombia peso 3170.64 -0.15 -24.68 Peru sol 3.4092 -0.09 -12.62 Argentina peso (interbank) 12.9825 -0.15 -34.14 Argentina peso (parallel) 14.27 0.98 -1.89 (Reporting by Guillermo Parra-Bernal; Editing by Chizu Nomiyama)
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