EMERGING MARKETS-Brazil currency, stocks slip as doubts follow protests

lunes 14 de marzo de 2016 18:38 GYT
 

(Adds final prices in Brazil and Mexico)

By Flavia Bohone

SAO PAULO, March 14 (Reuters) - Brazil's currency and stock market fell on Monday following weekend demonstrations calling for the ouster of President Dilma Rousseff, with traders taking profits as the focus turned to questions about the strength of the political opposition.

The Brazilian real dropped 1.71 percent to 3.6524 per dollar and the benchmark Bovespa stock index lost 1.55 percent after surging nearly 10 percent and 20 percent respectively in the prior two weeks.

The outlook for Rousseff has rapidly deteriorated.

A corruption investigation is nearing her inner circle and her largest coalition partner has distanced itself from the government, boosting expectations of a more market-friendly administration ahead.

Rousseff's woes continued on Sunday with the largest in a series of anti-government rallies sweeping Brazil's biggest cities, confirming a growing appetite for change but raising doubts about what would follow.

"Brazil continues to ride a wave of impeachment optimism, but we warn that this bullishness is likely overdone," BBH analysts said in a note to clients.

Rousseff's opponents in Congress have tried to seize on the widespread discontent to mount a reform agenda, but crowds on Sunday appeared resistant to certain opposition leaders taking the spotlight.   Continuación...