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Brazil: Real getting slammed as jailed candidate leads presidential polls

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Brazil Lula protest
A
demonstrator holds up a sign that reads, in Portuguese, “Lula, a
thief’s place is in prison” as people shout slogans against
Brazil’s former President Luiz Inacio Lula da Silva in front of
the Federal Police Department in Curitiba, April 6,
2018.

AP Photo/Leo
Correa



The
Brazilian real
extended losses Thursday as political chaos
compounded fears surrounding a currency that has already been
under pressure.

The Brazilian real was down 2% around 3:15 p.m. ET, holding close
to record lows. The currency, now at its weakest
level against
the dollar
since at least 2016, has shed nearly a fourth of
its value this year. 

The country is facing a high degree of uncertainty ahead of its
presidential election, which is set to take place in October. A
poll out Monday showed jailed former President Luiz Inacio Lula
da Silva holding a double-digit lead against far-right
Congressman Jair Bolsonaro. Lula is facing corruption charges and
is expected to be barred from the race. 

In polls that excluded the leftist leader, Bolsonaro held a lead
over former Gov. Geraldo Alckmin, whose policies hang closer to
the center. Alckmin would be the preferred winner in the eyes of
investors, according to
the Associated Press

The real has been under pressure amid a dollar rally and a
broader selloff of emerging markets currencies. It has been one
of the currencies most affected by a steep slide in the Argentine
peso this year, according to JPMorgan strategists led by John
Norman. 


Screen Shot 2018 08 23 at 3.13.42 PMMarkets Insider

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