Analysts at ANZ explained that Brazilian assets were under the pump overnight.
"Brazil assets were under the pump overnight amidst a political crisis that engulfed the President as accusations of illegal payments to buy silence came to markets’ attention.
Brazil’s real recorded the largest fall since 2008 (8%, though it has risen 20% in the prior 18 months). This occurred despite the central bank intervening to support the economy.
Stocks were hit 10% before trading was halted. Bonds were unloved. Apart from highlighting corruption itself, it threatens to undermine the reform path (including fiscal reform) that had helped boost sentiment towards the country and this risks seeping into the broader region."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.