The real plunged to a 12-year low, leading losses for Latin American currencies amid a global rout spurred by concern that the economic slowdown is worsening in China, Brazil’s largest trading partner.
An index of the region’s currencies fell to the lowest since at least 1992, while Chile’s peso sank to the weakest in 12 years and Mexico’s peso set a new record low. The real fell 1.8 percent to 3.5641 per dollar, the lowest since March 2003.
Today’s selloff comes after nine consecutive weeks of losses for the Bloomberg JP Morgan Latin America Currency Index. More than $5 trillion has been erased from the value of global equities since China unexpectedly devalued the yuan on Aug. 11. The rout is shaking confidence that the global economy will be strong enough to withstand higher U.S. interest rates, even as bets ease on a September increase.
Brazil Energy Insight 
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