EMERGING MARKETS-Brazilian real slumps as traders boost value of dollar assets

miércoles 30 de diciembre de 2015 16:30 GYT
 

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)