The Brazilian real slumped over 5 percent on Thursday, its biggest daily loss since the 2011 Greek debt crisis, as concerns over a potential trade shock under U.S. President-elect Donald Trump prompted investors to shun risky assets.
The sharp move pushed the real past 3.3 to the U.S. dollar for the first time in two months, triggering stop-loss automatic sales of the Brazilian currency, traders said.
The real slumped as much as 5.7 percent to 3.3902, the weakest since late June.
Traders said they also feared President Michel Temer could face legal action after documents cited in local media showed he received 1 million reais in donations from builder Andrade Gutierrez during the 2014 re-election campaign of ousted President Dilma Rousseff, to whom he was vice president.
The Mexican peso, widely seen as more vulnerable to Trump’s policies, weakened 3.7 percent. (Reporting by Bruno Federowski; Editing by Daniel Flynn)
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