WRAPUP 2-Brazil stocks, currency plunge as Rousseff gains in poll
(Updates prices, adds analyst quote, Araujo and Mantega comments)
By Asher Levine
SAO PAULO, Sept 29 (Reuters) - The Brazilian real touched its weakest level in nearly six years on Monday and the benchmark Bovespa stock index was on track for its biggest one-day drop in more than a year after a poll showed President Dilma Rousseff gaining on challenger Marina Silva ahead of Sunday's election.
The poll, released late Friday by research firm Datafolha, showed Rousseff advancing in first-round voter intentions. In a potential second-round runoff, where Silva had once led by as much as 10 points, Rousseff held 47 percent against Silva's 43 percent.
Brazilian investors have been heavily critical of Rousseff's government for implementing policies that have gone against minority shareholder interests in state-run companies and a tendency to enact one-off stimulus measures rather than structural reforms.
The real plunged as much as 2.54 percent in early trade to 2.478 per dollar, its weakest level since late 2008, before paring losses to about 1.25 percent.
Many traders see Brazil's risk premium declining under a different administration, which would help attract foreign investment and support the real.
"If (Rousseff's advance) is reconfirmed in the next polls, the sky is the limit for the dollar," said Mario Battistel, head of currency trading at Sao Paulo brokerage Fair, adding that the real could pass 2.50 per dollar in the short term.
In the past the central bank has stepped up its intervention in the currency market when the real weakens sharply in an effort to limit pass-through to inflation. Continuación...