Brazil’s real sinks on debt data

 SAO PAULO, July 31 Brazil's currency sank its
most in nearly three months on Friday after worse-than-expected
government debt data raised investor fears of a credit
downgrade, while Mexico's currency gained following new
government efforts to support the struggling peso.
    Other currencies in the region were little changed, though
Colombia's peso posted a modest rebound after hitting its
weakest in nearly 12 years on Thursday.
    The Brazilian real  started the trading session
slightly higher against the dollar but moved into negative
territory after the central bank reported a much
wider-than-expected primary budget deficit for June.
    Brazil's public accounts continue to suffer under a
weakening economy, contributing to investor expectations that
the country could lose its investment-grade credit rating.
    The real sank to 3.41 per dollar in early-afternoon trading,
a closing level since March, 2003.
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