Election jitters send real packing

MARKET NEWS

SAO PAULO -- The Brazilian real hit a record low against the US dollar last week, as campaigning for the presidential elections unsettled local FX markets.

The real slipped to 2.897 per dollar last Wednesday (July 17) -- its lowest level since its introduction in 1994, despite interest rate-cutting from the Brazilian central bank.

"The fact that there was no positive reaction following the rate cut tells you it’s about the election," said Jana Butlang, strategist at Fleet Global Markets in Bos