Real hammered as election woes bite

The currency slipped to 3.87 reals per dollar last week, just shy of the record low hit last month. The currency has lost around 40% of its value against the US dollar this year.

Luis Inacio Lula da Silva topped the poll after three previous attempts, but he failed to win the presidency outright and a second round will be held at the end of this month.

The second round will be contested between Lula, who represents the leftist Brazil Worker's Party and government-backed candidate Jose Serra.